Ex-factory wholesale price governs assessable value; post-clearance transportation charges are excluded from excise valuation.

Where the approved ex-factory wholesale price was actually realised from sales to independent buyers, assessable value under the Central Excises and Salt Act, 1944 had to be based on that price under Section 4(1)(a) read with Section 4(4)(d)(i). Charges incurred after clearance from the factory, including transportation-related amounts recovered on depot sales, were not part of assessable value because they arose post-removal and did not affect the ascertainable wholesale price at the factory gate.

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Issues: Whether, where the factory-gate ex-factory price was approved and actual wholesale sales to independent buyers were made at that price, the assessable value under the Central Excises and Salt Act, 1944 had to be based on that price and whether transportation and other post-clearance charges recovered from depot sales were includible in the assessable value.

Analysis: The approved price lists under Section 4(1)(a) of the Central Excises and Salt Act, 1944 were not disputed, and a substantial portion of sales was effected at the factory gate to unconnected wholesale buyers. On that footing, the value had to be computed under Section 4(1)(a) read with Section 4(4)(d)(i), because once the wholesale price at the factory gate was ascertainable, charges incurred after clearance from the factory did not form part of assessable value. The Tribunal applied the settled principle that post-clearance expenses, including transportation-related charges, are irrelevant where an ex-factory price is available and determinable.

Conclusion: The approved ex-factory price at which sales were actually made to independent wholesale buyers constituted the assessable value, and transportation-related post-clearance charges were not includible.

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