Valuation of excise goods sold at different bona fide prices cannot be fixed using industrial-consumer price for dealer sales.

Where goods are sold at different bona fide prices to different classes of buyers, the price charged to industrial consumers cannot automatically be adopted as the assessable value for clearances to independent wholesale dealers at the factory gate. Following its earlier decision in the assessee's own case, the Tribunal accepted that different prices to wholesale dealers and industrial consumers were permissible and that the industrial-consumer price was not the correct basis for valuation of dealer sales. The duty demands founded on that higher price were therefore set aside, and the assessee succeeded on the valuation issue.

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Issues: Whether the higher price charged to industrial consumers could be adopted as the assessable value for clearances made to independent wholesale dealers at the factory gate.

Analysis: The Tribunal followed its earlier decision in the assessee's own case holding that different prices charged from independent wholesale dealers and industrial consumers are permissible. It held that, in the circumstances, the price charged from industrial consumers could not be taken to determine the assessable value of goods sold to independent wholesale dealers.

Conclusion: The duty demands based on adoption of the industrial-consumer price were set aside and the appeals were allowed.

Final Conclusion: The assessee succeeded on the valuation issue, and the confirmed differential duty demands did not survive.

Ratio Decidendi: Where goods are sold at different bona fide prices to different classes of buyers, the price charged to one class cannot automatically be adopted to determine the assessable value of sales to another class.

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