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Issues: Whether the assessable value of the biscuits was to be determined on the basis of the ex-factory wholesale cash price charged to wholesale buyers at arms length, or on the distributors' resale price.
Analysis: The goods were sold partly to wholesale buyers at the factory gate in arm's length transactions. The existence of such wholesale dealings was sufficient to ascertain the wholesale cash price for valuation under Section 4 of the Central Excises and Salt Act, 1944, and the number of such transactions was not decisive. The distributors' price, which included freight and other manufacturing expenses, was not the proper basis for assessment where an ex-factory wholesale cash price was available.
Conclusion: The ex-factory wholesale cash price charged to wholesale buyers other than distributors had to form the basis for determining the assessable value, and the contrary valuation adopted below was set aside in favour of the assessee.
Final Conclusion: The revision was allowed and the valuation had to be redetermined on the basis of the available factory-gate wholesale price.
Ratio Decidendi: Where wholesale sales at arm's length are available, the assessable value under Section 4 must be based on the ex-factory wholesale cash price rather than the distributors' resale price.
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