Factory-gate sale price governs excise valuation; stockyard depreciation charges were held excludible from assessable value.

Where factory-gate sale price was available and accepted as the ex-factory value, that price remained the correct assessable value even for clearances later sold through stockyards. Stockyard depreciation charges recovered from customers were not part of the assessable value on these facts, because only a small portion of goods moved to stockyards for subsequent sale and the prevailing factory-gate price governed valuation. The proposed addition of stockyard depreciation charges was therefore unjustified, and the duty demand was set aside.

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Issues: Whether stockyard depreciation charges recovered from customers were includible in the assessable value for excise duty when the factory gate sale price was available and accepted.

Analysis: The appellants sold the major portion of their goods at the factory gate, and only a small quantity was transferred to stockyards for subsequent sale. In such a situation, where the ex-factory sale price was available and approved, the same constituted the correct assessable value even for clearances sold through stockyards.

Conclusion: The addition of stockyard depreciation charges to the assessable value was not justified, and the demand of duty was set aside.

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