Valuation must follow the governing circular where a beneficial rebate issue was not considered by the authorities.

Valuation of soap and vegetable products had to be reconsidered where the assessable value was proposed to be increased by adding excise-duty rebate not passed on to consumers. The Tribunal noted that the dispute was already covered by its earlier order and that the Supreme Court had required compliance with the relevant Board circular. Because that circular had not been considered by the adjudicating and appellate authorities, the earlier orders were set aside and the matter was remitted for fresh determination in accordance with the circular and after hearing the assessee.

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Issues: Whether the assessable value of soap and vegetable products could be revised upward by including the rebate of excise duty where the rebate had not been passed on to consumers and the matter was governed by a relevant Board circular.

Analysis: The appeals raised a common question on valuation. The Tribunal noted that the issue had already been covered by its earlier order and that the Supreme Court had directed the parties to act in accordance with the Board circular. Since the circular had not been considered by the adjudicating and appellate authorities, the appropriate course was to set aside the earlier orders and require fresh determination in light of that circular.

Conclusion: The assessable value was not finally upheld on the basis adopted by the lower authorities, and the matter was directed to be reassessed in accordance with the circular.

Final Conclusion: The appeals succeeded, and the valuation dispute was sent back for fresh assessment under the governing circular.

Ratio Decidendi: Where a relevant beneficial circular bearing on valuation has not been considered by the authorities, reassessment must be made in accordance with that circular after giving the assessee an opportunity of hearing.

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