Assessable value includes only realised price variation amounts under a settled escalation clause, not unrealised claims.

Amounts actually realised under a price variation and settlement clause were treated as part of the assessable value for excise duty, because the escalation claim was settled and the sums received had already been added to value on which duty was paid. The text distinguishes a case where no amount was realised because the contract had become unenforceable. Only realised consideration was relevant to assessment, while unrealised claims were not. The appeal was allowed with consequential relief.

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Issues: Whether amounts realised by the assessee under a price variation and settlement clause formed part of the assessable value for excise duty.

Analysis: The contract provided for price variation linked to changes in input prices, and the assessee and the buyer later settled the escalation claim. The amounts so settled and actually received had already been added to the assessable value and duty had been paid on them. A distinction was drawn from a case where no amount had been realised because the contract had become unenforceable.

Conclusion: Only the amounts actually realised by the assessee formed part of the assessable value. The appeal was therefore allowed with consequential relief.

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