Price-based valuation prevails when the selling price is available and undisputed; residual cost-based assessment is impermissible.

Where the selling price of finished goods was available and not disputed, assessable value had to be determined under the primary price-based valuation provision rather than the residual cost-of-production rules. The availability of an undisputed price made resort to the alternative valuation mechanism unnecessary, and the Revenue's reliance on decisions involving captive consumption or disputed inclusions was distinguished. The lower appellate order was upheld, and the demand and penalty confirmed by the original authority did not survive.

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Issues: Whether, when the selling price of the finished goods was available and not shown to be disputed, assessable value had to be determined under the price-based provision rather than on the basis of cost of production under the valuation rules.

Analysis: The dispute turned on the applicability of the price-based method of assessment. The available and undisputed selling price of the colour television sets was treated as sufficient for valuation under the main charging valuation provision. Resort to the residual valuation mechanism was held unnecessary where the price under the primary provision was available. The decisions relied on by the Revenue were distinguished because they involved different valuation controversies, including captive consumption and disputes about inclusion of additional amounts in the assessable value.

Conclusion: The assessable value was required to be determined on the basis of the available selling price, and the Revenue could not insist on valuation by cost of production under the residual rules. The Revenue's appeal failed.

Final Conclusion: The lower appellate order was upheld and the demand and penalty confirmed by the original authority did not survive.

Ratio Decidendi: Where the price under the primary valuation provision is available and not disputed, resort to residual valuation based on cost of production is not permissible.

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