Ascertainable normal price governs excise valuation despite different buyer prices and stock transfers to own units.

Section 4(1)(a) of the Central Excise Act, 1944 applies where excisable goods are ordinarily sold in wholesale trade and a normal price is ascertainable. Differential pricing to different classes of buyers does not by itself make that price unascertainable. Section 4(1)(b) applies only when no normal price can be determined because the goods are not sold or for another such reason. As the components were admittedly sold in the market at a price, their transfer to sister units on stock transfer basis did not displace section 4(1)(a). Valuation under section 4(1)(b) and the Valuation Rules was therefore inapplicable.

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Issues: Whether the value of motor vehicle components transferred from the assessee's factory to its own units was required to be determined under section 4(1)(a) of the Central Excise Act, 1944 on the basis of ascertainable normal price, or under section 4(1)(b) of that Act on the footing that no normal price was ascertainable.

Analysis: Section 4(1)(a) governs valuation where excisable goods are ordinarily sold in wholesale trade and the normal price is ascertainable. The proviso to section 4(1)(a) does not create an exception merely because the assessee sells the same goods to different classes of buyers at different prices. Such differential pricing does not make the price unascertainable. Section 4(1)(b) applies only where the normal price is not ascertainable because the goods are not sold or for some other reason. On the facts, the assessee admittedly sold the components in the market at a price and therefore an ascertainable price existed. The mere fact that some components were transferred to sister units on stock transfer basis did not displace the applicability of section 4(1)(a). Consequently, valuation under section 4(1)(b) and the Valuation Rules did not arise.

Conclusion: The components transferred to the assessee's own units were liable to be valued under section 4(1)(a) of the Central Excise Act, 1944 and not under section 4(1)(b).

Ratio Decidendi: Differential sale prices to different classes of buyers do not render the normal price unascertainable; section 4(1)(b) applies only where no ascertainable normal price exists.

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