Assessable value for excise duty excludes depot and unloading charges when factory gate price is ascertainable.

Where the factory gate price is ascertainable, depot service charges and unloading charges that do not form part of the price at the factory gate are not includible in the assessable value for central excise duty. Applying that principle, the High Court held that the notices and consequential demand could not stand because they proceeded on inclusion of such depot-related charges despite earlier appellate orders in the assessee's favour. The impugned notice and demand order were therefore quashed, and the excise demand based on those charges was set aside.

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Issues: Whether depot service charges and unloading charges could be included in the assessable value for central excise duty when the factory gate price was ascertainable.

Analysis: The writ petitions turned on an identical question already decided in connected matters. The governing principle applied was that where the factory gate price is ascertainable, charges not forming part of the manufacture or sale at the factory gate cannot be added to the assessable value for central excise purposes. On the admitted facts, the notices and the consequential demand order proceeded on inclusion of depot service charges and unloading charges despite earlier appellate orders in the assessee's favour.

Conclusion: The inclusion of depot service charges and unloading charges in the assessable value was not justified, and the impugned notice and demand order were quashed in favour of the assessee.

Final Conclusion: The challenge succeeded and the excise demand based on inclusion of depot-related charges could not stand.

Ratio Decidendi: Where the factory gate price is ascertainable, depot-related charges and unloading charges not forming part of the price at the factory gate are not includible in the assessable value for central excise duty.

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