Statutory valuation deductions may be raised on appeal, with the matter remanded for first-instance examination.

Statutory deductions under Section 4(4)(d)(i) and Section 4(2) of the Central Excise Act, 1944 were held capable of being examined at the appellate stage, even though they had not been raised before the adjudicating authority. The valuation dispute also involved the buyer-appellant relationship, but the proper course was for the jurisdictional adjudicating authority to examine the deductions and related pleas first. The matter was remitted for fresh consideration, and the appeals were allowed by way of remand.

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Issues: Whether the claim for statutory deductions under Section 4(4)(d)(i) and Section 4(2) of the Central Excise Act, 1944 could be examined at the appellate stage and required reconsideration by the adjudicating authority.

Analysis: The dispute turned on valuation, including the effect of the relationship between the buyers and the appellant. The claim for statutory deductions had not been taken before the adjudicating authority, but such deductions are permissible in law and may be considered even at the appellate stage. The proper course was for the jurisdictional adjudicating authority to examine the issue in the first instance, with liberty to the appellant to raise connected pleas in the remanded proceedings.

Conclusion: The issue was remitted to the jurisdictional adjudicating authority for fresh examination, and the appeals were allowed by way of remand.

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