Normal price to independent buyers governs excise valuation for sister-unit clearances; freight deduction becomes irrelevant.

Where the same excisable goods were sold to independent buyers in wholesale trade, that normal price governed valuation under Section 4 because the price was ascertainable, the buyer was not related, and the price was the sole consideration. The approved assessable value for independent sales therefore supplied the correct benchmark for clearances to the sister unit, and there was no basis to move to a residual valuation method. The later concept of transaction value was not applicable to the relevant period. Once valuation was fixed on the independent buyer price, the claimed freight deduction for supply to the sister unit became immaterial.

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Issues: Whether the assessable value of caustic soda lye supplied to the appellant's sister unit had to be determined on the basis of the normal price at which the goods were sold to independent buyers, and whether freight deduction to the sister unit's premises was relevant.

Analysis: The valuation provision applicable at the relevant time required excisable goods to be valued, where the normal price was ascertainable, on the basis of the price at which they were ordinarily sold to a buyer in the course of wholesale trade, provided the buyer was not a related person and the price was the sole consideration. Since the appellant was also selling the same goods to independent buyers and that assessable value had already been approved, the normal price to independent buyers furnished the correct benchmark. In that situation, there was no occasion to travel to the residual mode of valuation. The later concept of transaction value was not applicable to the period in question. Once valuation was fixed on the basis of the normal price, the claim for deduction of freight element for supply to the sister unit became immaterial.

Conclusion: The assessable value for supplies to the sister unit had to be taken as the same price determined for independent buyers, and the appeal failed.

Ratio Decidendi: Where the assessee sells the same goods to independent buyers in wholesale trade, that normal price governs valuation under Section 4 and supersedes any separate valuation claim for captive or sister-unit clearances.

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