Normal price principle: factory gate price applies where regional transfers are not sales and dealers' location alone doesn't change class. The Board clarifies that wholesale dealers in different locations are not different classes of buyers solely by location, and transfers to regional sales depots are internal transfers, not sales creating separate classes. Accordingly, differing prices charged by geographically separated dealers do not automatically constitute separate normal prices, and the factory gate price may be applied for valuation when it is a genuine price. Circular No. 8/76 C.F.V. is modified to this extent.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Normal price principle: factory gate price applies where regional transfers are not sales and dealers' location alone doesn't change class.
The Board clarifies that wholesale dealers in different locations are not different classes of buyers solely by location, and transfers to regional sales depots are internal transfers, not sales creating separate classes. Accordingly, differing prices charged by geographically separated dealers do not automatically constitute separate normal prices, and the factory gate price may be applied for valuation when it is a genuine price. Circular No. 8/76 C.F.V. is modified to this extent.
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