Depot valuation at normal transaction value: duty payable at time of removal based on ex-depot price.
Where goods are sold through depots, Rule 7 of the Central Excise Valuation Rules requires valuation at the depot's Normal Transaction Value-the transaction value at which the greatest aggregate quantity of identical goods are sold at or nearest to the time of removal from the factory. If the normal transaction value is not ascertainable at removal, provisional assessment may be sought with substantiated grounds, subject to interest on any differential duty upon finalisation. Duty is payable at the time of removal at the rate in force on that date. (AI Summary)