Excise valuation must rest on wholesale cash price at factory gate; consumer-sale basis demand was quashed, with fresh determination permitted.

Excise valuation had to be based on the wholesale cash price at the factory gate, not on sales to consumers. The Delhi High Court set aside the impugned excise demand and the orders of the Assistant Collector and Appellate Collector, noting the respondents' no objection. It also preserved the authorities' power to redetermine the wholesale cash price in accordance with law after giving the petitioner an opportunity of hearing.

---

---

Issues: Whether the impugned excise demand and the orders of the Assistant Collector and Appellate Collector were liable to be quashed, and whether the wholesale cash price for assessment could be redetermined after giving the petitioner an opportunity of hearing.

Analysis: The demand had been raised on the basis of sales to consumers rather than on the wholesale cash price at the factory gate, which was the relevant basis for excise valuation. In view of the respondents' no objection, the impugned demand and orders were set aside, while preserving the power of the authorities to determine the wholesale cash price afresh in accordance with law after affording the petitioner an opportunity.

Conclusion: The impugned demand and orders were quashed, and liberty was granted to the respondents to redetermine the wholesale cash price after giving the petitioner an opportunity.

---