Invoice value assessment does not waive statutory deductions, but the assessee must substantiate post-removal additions and supporting evidence.

Election of invoice value assessment under Rule 173C(11) did not by itself extinguish statutory deductions otherwise allowable under Section 4(4)(d)(ii) of the Central Excise Act. The assessee, however, still had to substantiate that the higher depot price reflected post-removal additions such as freight and insurance, and the supporting material had to be properly examined. Because the lower appellate authority did not consider the Chartered Accountant's certificate and related documents filed with the appeal, the matter required fresh determination after giving the assessee a hearing and an opportunity to produce evidence. The order was set aside and the dispute remanded for de novo consideration of assessable value.

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Issues: Whether an assessee opting for invoice value assessment under Rule 173C(11) of the Central Excise Rules, 1944 loses the statutory deductions otherwise available under Section 4(4)(d)(ii) of the Central Excise Act, 1944, and whether the matter required remand for non-consideration of the Chartered Accountant's certificate and related documents.

Analysis: The statutory deductions under Section 4 cannot be denied merely because the assessee had chosen invoice value assessment. However, the assessee remained bound to explain and substantiate why depot prices were higher than factory gate prices and to establish that the difference represented post-removal additions such as freight and insurance. The appellate order did not deal with the Chartered Accountant's certificate filed with the appeal memorandum, and the explanation and supporting documents were not properly considered by the lower appellate authority. In these circumstances, a fresh determination after giving the assessee an opportunity to produce the necessary material was necessary.

Conclusion: The assessee was not held to have forfeited the benefit of statutory deductions, and the matter was remanded for de novo consideration after personal hearing.

Final Conclusion: The impugned order was set aside and the dispute was sent back for fresh adjudication on the assessable value after considering the assessee's supporting material.

Ratio Decidendi: Election of invoice value assessment does not by itself extinguish deductions statutorily admissible in determining assessable value, but the assessee must substantiate the factual basis for claiming such deductions.

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