Invoice price and commercial price under exemption notification: profit-margin stipulation alone did not defeat the tax benefit.

Exemption under Notification No. 120/75-C.E. depended on whether the invoice value reflected the genuine commercial price actually charged. The authorities found that the assessee's price was fully commercial, and the Revenue produced no material to show that a single-customer supply agreement or profit-margin stipulation had distorted that price. A contractual limit on the customer's profit margin, by itself, was insufficient to displace the invoice price or deny the exemption. The assessee therefore retained the notification benefit, and the Revenue's objection failed.

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Issues: Whether the assessee was entitled to exemption under Notification No. 120/75-C.E. despite sales to a single customer under an agreement limiting profit margin, and whether such arrangement disqualified the invoice price as a fully commercial price.

Analysis: The exemption notification operated on the basis of invoice value where that value represented the genuine price actually charged. The finding of the Assistant Collector, affirmed in appeal, was that the price charged by the assessee was fully commercial. The Revenue did not adduce material to show that the agreement with the customer had distorted the price or made the transaction non-commercial. The stipulation regarding profit margin by the customer, by itself, did not establish that the price was influenced so as to deny the exemption.

Conclusion: The assessee remained entitled to the benefit of Notification No. 120/75-C.E., and the Revenue's challenge failed.

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