Place of removal under excise law depends on where possession passes; delivery at destination can determine valuation.

For excisable goods sold on terms where the manufacturer retains ownership until delivery, the buyer's delivery point is the "place of removal" under Section 4(4)(b)(iii) of the Central Excise Act, 1944. The amended definition is read to cover the point from which goods are sold after clearance, and the decisive factor is where possession passes in the ordinary course of sale. If the manufacturer insures the goods and delivery is completed through the transport agency at destination, the sale is effected at that delivery point. The stated position is that, after the amendment, valuation is linked to the price at the place of removal, and Section 4(2) applies only where that price is not known.

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Issues: Whether, where excisable goods remain in the ownership of the manufacturer until delivery to the buyer at the destination, the buyer's delivery point is the "place of removal" under Section 4(4)(b)(iii) of the Central Excise Act, 1944.

Analysis: The amended definition of "place of removal" includes a depot, consignment agent's premises, or any other place from where the goods are sold after clearance from the factory. The expression "from where such goods are removed" is only descriptive and completes the definition. The decisive factor is the place where possession of the goods is transferred in the ordinary course of sale. Where the manufacturer retains ownership, insures the goods on its own account, and the goods are delivered to the buyer only at the destination through the transport agency, the sale is effected at the delivery point. The circulars and trade notice relied on also support the position that, after the amendment, the relevant sale price is the price at the place of removal and Section 4(2) applies only where the sale price at that place is not known.

Conclusion: The place of delivery to the buyer is the place of removal in such cases, and the law stated in the earlier decision was correctly laid down.

Ratio Decidendi: For the purpose of Section 4(4)(b)(iii), the place of removal is the place where the transfer of possession and sale actually occur, and where the manufacturer retains ownership till delivery, the buyer's delivery point constitutes the place of removal.

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