Excise valuation excludes factory-to-depot freight and transit insurance when goods are sold from depots at a uniform price.

Where goods were cleared from depots at a uniform price and not from the factory gate, the amended Section 4 valuation rule did not justify adding factory-to-depot freight or transit insurance to the assessable value for excise duty. The transportation cost related to movement before depot sale, and on these facts it was excluded from duty valuation. The valuation dispute was resolved in favour of the assessee. The remaining refund-related issue required fresh determination on evidence, and the impugned orders were set aside to that extent.

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Issues: Whether, after the amendment of Section 4 of the Central Excise Act, 1944, freight from the factory to the depot and transit insurance were includible in the assessable value where the goods were cleared only from depots at a uniform price.

Analysis: The amended valuation provision was held not to apply to the assessee's case because the clearances were not made from the factory gate and the goods were sold from depots at a uniform price throughout the country. On that footing, the cost of transportation from the factory to the depot and the transit insurance relating to that movement could not be added to the value for levy of excise duty.

Conclusion: The issue was decided in favour of the assessee, and freight and transit insurance were held to be not includible in the assessable value on these facts.

Final Conclusion: The valuation dispute was resolved in favour of the assessee, while the remaining refund-related question was left for fresh determination after evidence, with the impugned orders set aside to that extent.

Ratio Decidendi: Where goods are cleared from depots at a uniform price and not from the factory gate, post-amendment valuation does not permit inclusion of factory-to-depot transportation cost and transit insurance in the assessable value.

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