Excise valuation must use factory-gate wholesale price before the 1996 amendment, not depot sale prices.

For the period before the 1996 amendment, excise duty on wholesale clearances was to be assessed on the normal price at the factory gate at the time and place of removal, where that price was ascertainable. Depot sale prices could not be used for that earlier period because the inclusion of depot sales within the definition of place of removal was introduced only by the 1996 amendment and was not retrospective. As the factory-gate wholesale price had been approved and was available, the Revenue's demand based on higher depot prices for the relevant period was unsustainable.

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Issues: Whether, for the period prior to the 1996 amendment, excise duty on the goods was to be assessed on the wholesale price at the factory gate when such price was ascertainable, or whether depot sale prices could be taken into account.

Analysis: The governing principle under the valuation provisions was that excisable goods sold in wholesale trade at the time and place of removal are to be assessed on the normal price at the factory gate where that price is ascertainable. The later inclusion of depot sales in the definition of place of removal was introduced only by the 1996 amendment, and that amendment did not apply to the period in dispute. On the facts, the wholesale price at the factory gate had been approved and was available, while the higher depot prices pertained to a later and different point of sale.

Conclusion: The duty had to be assessed on the factory-gate wholesale price, and the Revenue's demand based on depot prices for the relevant period was unsustainable.

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