Excise duty valuation must follow the normal price at removal, not a later lower bulk-buyer price.

Excise duty on goods cleared from the factory had to be assessed at the time of removal on the normal price ordinarily realised from independent customers, not on a lower price later obtained from a special bulk buyer. Because the goods were sent to outside magazines without being earmarked for any specific sale and no price list was filed for those removals, the later contingent sale could not reduce the duty already attracted on clearance. Provisional payment did not override the statutory basis of valuation at the point of removal. The excise authority was therefore justified in adopting the ordinary market price, and the assessee's contention failed.

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Issues: Whether excise duty on goods removed from the factory to outside magazines for later sale had to be assessed on the basis of the ordinary market price prevailing at the time of removal, or on the lower price usually realised from a particular bulk buyer.

Analysis: The goods were cleared from the factory without being earmarked for sale to any specific buyer, and no price list was filed for those removals. Duty under the excise scheme had to be determined at the point of removal, and the applicable price was the price at which comparable goods were ordinarily sold to independent customers. The later and contingent sale to a special buyer could not alter the duty liability already attracted at removal. The provisional payment procedure followed by the assessee could not displace the statutory requirement that duty be levied on the rate in force and on the basis of the relevant normal price at the time of clearance.

Conclusion: The normal price for the goods removed to the magazines was the price payable by ordinary customers, not the lower price charged to the special bulk buyer. The excise authority was in levying duty on that basis, and the assessee's contention failed.

Ratio Decidendi: For excisable goods cleared from the factory without a declared destination sale price, duty is assessable on the normal price ascertainable at the time of removal, and a later sale to a preferred buyer does not retrospectively reduce that liability.

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