Part II price-list valuation failed where buyers only placed orders and prices varied; invoice-value assessment was the proper course.

Where buyers merely place orders and the manufacturer confirms them at varying prices, the transactions are not treated as sales to a recognised class of buyers for Part II price-list purposes. Applying the principle in Shakti Insulated Wires, the Tribunal held that the filed Proforma Part II price list was inapplicable. On valuation, it held that where prices fluctuate frequently, assessable value should not be fixed mechanically at the highest monthly price; the proper course is to seek invoice-value assessment under Rule 173C(11). The challenge to valuation and rejection of the Part II price list therefore failed, and the appeal was rejected.

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Issues: Whether the price list filed in Proforma Part II was applicable on the footing that the goods were sold against contracts to different classes of buyers, and whether the assessable value could be fixed at the highest price for the month.

Analysis: The goods manufactured fell under Chapter 40 of the Central Excise Tariff Act, 1985. The Tribunal applied the earlier decision in Shakti Insulated Wires and held that where buyers merely place orders and the manufacturer confirms them at different prices, there are no contracting parties in the sense required to justify treatment as sales to a class of buyers. On that basis, the Part II price list was not applicable. The complaint regarding valuation on the highest monthly price was answered by holding that, if prices fluctuate frequently, the appropriate course is to seek invoice value assessment under Rule 173C(11).

Conclusion: The challenge to the valuation and the rejection of the Part II price list failed, and the appeal was rejected.

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