APM petroleum valuation excludes subsidy-funded oil pool receipts from assessable value under section 4

Assessable value for SKO and LPG sold under the Administered Price Mechanism did not include the additional amount met from the oil pool account or subsidy, because that amount was not received from ultimate consumers. The article notes that the post-amendment position under section 4 had already been settled by a Larger Bench and followed in later Tribunal rulings, so no different valuation result was warranted on these facts. The assessee's valuation method was sustained.

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Issues: Whether, after amendment of section 4, the assessable value of SKO and LPG sold under the Administered Price Mechanism had to include the additional amount received by the oil marketing companies from the oil pool account or subsidy, or whether valuation continued on the basis adopted earlier.

Analysis: The dispute concerned valuation of petroleum products whose sale price to the end consumer was fixed by the Government under the Administered Price Mechanism. The Tribunal noted that the additional amount paid by the oil marketing companies was met out of subsidy from the oil pool account and was not received from the ultimate consumers. The issue had already been decided by the Larger Bench and followed in later Tribunal decisions, which held that the post-amendment valuation position did not warrant a different result on these facts.

Conclusion: The additional amount was not to be separately brought into assessable value on the facts of the case, and the valuation adopted by the assessee was sustained in its favour.

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