Excise valuation permits separate price lists for distinct buyer classes where quantities and negotiated prices differ.

Separate buyer classes may justify distinct valuation lists where sales are made in substantially different quantities and at separately negotiated prices. The note states that, for excise duty valuation purposes, a regular buyer price list and a contract buyer price list could coexist for the same goods because the buyers were treated as separate and distinct classes. On that basis, Part I price lists for regular buyers and Part II price lists for contract buyers were considered permissible, and consequential relief followed for the assessee.

---

---

Issues: Whether Part I and Part II price lists could validly coexist for the same goods where sales were made to different classes of buyers at separately negotiated prices.

Analysis: The Tribunal relied on the principle that buyers purchasing in substantially different quantities may form separate and distinct classes. On that basis, the existence of a regular buyer price list alongside a contract buyer price list was held permissible under the valuation provision governing excise duty.

Conclusion: The coexistence of Part I price lists for regular buyers and Part II price lists for contract buyers was held to be permissible. The appeal succeeded and the assessee was entitled to consequential relief.

---