Reduced sale price under excise notification may be considered at finalisation of provisional assessment for O.E. tyres.

O.E. tyres cleared under Notification No. 17/74-CE were to be assessed on the actual wholesale cash price charged on the goods, rather than under the general valuation rule in section 4 of the Central Excises and Salt Act, 1944. On that basis, a later reduced sale price could be taken into account for assessment where the clearances were under provisional assessment and finalisation was still pending. The benefit, however, depended on proper co-relation of the goods assessed with the goods subsequently sold, and was to be applied at the stage of finalisation of the provisional assessment.

---

---

Issues: Whether the reduced sale price of O.E. tyres sold after clearance could be taken into account for assessment and consequential refund, where the goods were covered by Notification No. 17/74-CE and the assessments were provisional.

Analysis: The valuation of the O.E. tyres was governed not by Section 4 of the Central Excises and Salt Act, 1944, but by Notification No. 17/74-CE dated 18-1-1974, which required assessment on the basis of the actual wholesale cash price charged on such goods. The reduced sale price realised later was therefore relevant for assessment under the notification. The material clearances had also remained under provisional assessment, so the assessments were yet to be finalised.

Conclusion: The appellants were entitled in principle to the benefit of the reduced sale price, and the impugned orders were set aside to that extent. The benefit was to be given at the stage of finalisation of provisional assessment, subject to co-relation of the goods as assessed and as sold.

---