Factory-gate sales determine assessable value when genuine ex-factory price is available for excise valuation.

Where genuine factory-gate sales existed, the normal ex-factory price was the proper basis for determining assessable value under Section 4 of the Central Excise Act, 1944. The Revenue's objections about the proportion of such sales and the need to resort to costing or depot-based deductions did not displace the availability of actual factory-gate sales for valuation. The Commissioner's adoption of the ex-factory price was therefore sustained, and the Revenue's challenge was rejected.

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Issues: Whether the ex-factory price of aerated water sold at the factory gate constituted the assessable value under Section 4 of the Central Excise Act, 1944.

Analysis: The record showed that genuine factory-gate sales were available during the relevant period. Once such sales existed, the normal price realised at the factory gate was the proper basis for valuation. The Revenue's objections as to the proportion of such sales and the need to examine costing or depot-based deductions did not displace the finding that ex-factory sale price was available and usable for assessment under the statutory valuation scheme.

Conclusion: The ex-factory price was correctly taken as the assessable value, and the Revenue's challenge failed.

Final Conclusion: The valuation adopted by the Commissioner was sustained, and the Revenue appeal was rejected.

Ratio Decidendi: Where genuine factory-gate sales are available, the assessable value under Section 4 is to be determined on the basis of the normal ex-factory price rather than on an alternative valuation method.

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