Ex-factory price valuation excludes post-removal depot expenses, with depot maintenance charges held outside assessable value.

Where ex-factory wholesale price at the factory gate was the normal trade price and was otherwise acceptable, subsequent depot expenses such as godown rent, electricity, watchman salaries and other maintenance charges incurred after removal of the goods were not part of the assessable value. The Tribunal applied earlier precedent on identical facts and held that depot-related post-removal charges could not be added to valuation. The impugned order was set aside and the assessee succeeded.

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Issues: Whether expenditure on godown rent, electricity, watchman's salaries and similar depot maintenance charges was includible in the assessable value where ex-factory wholesale price at the factory gate was available.

Analysis: The facts were found to be on all fours with an earlier Tribunal decision holding that, where ex-factory clearances were made in the normal course of trade and the ex-factory price was acceptable, the assessable value had to be determined on that basis even if the goods were later sent to depots and sold from there. The same reasoning was applied to the present case.

Conclusion: The depot-related charges were not required to be added to the assessable value, and the impugned order was set aside in favour of the assessee.

Final Conclusion: The appeal was allowed and the demand or valuation adopted in the original order did not survive.

Ratio Decidendi: Where ex-factory price represents a normal trade clearance price and is otherwise acceptable, subsequent depot expenses incurred after removal of goods are not part of the assessable value.

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