Valuation based on factory-gate price: consignment-agent buyers were not a separate class, and differential duty was unsustainable.

Buyers purchasing through a consignment agent were not treated as a separate class from factory-gate buyers for valuation purposes because no relevant distinguishing factor was shown. As factory-gate price was available, assessable value had to be based on that price, and the higher differential duty collected on the routed sales was unsustainable. The appellant was therefore entitled to refund, the impugned orders were set aside, and the matter was remanded to the jurisdictional adjudicating authority to quantify the refund and decide afresh.

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Issues: Whether buyers purchasing through a consignment agent formed a separate class of buyers so as to justify a higher assessable value and deny refund of differential duty.

Analysis: The factory gate buyers and the buyers routed through the consignment agent were held not to constitute different classes for valuation purposes, as no relevant distinguishing factor was shown for classification. Since the factory gate price was available, duty was payable on that price, and the differential duty paid on the higher price was not sustainable.

Conclusion: The appellant was entitled to refund. The impugned orders were set aside and the matter was remanded to the jurisdictional adjudicating authority to work out the exact refund amount and decide afresh.

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