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TMI Blog1991 (6) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the scooters are despatched directly from the factory to all the dealers in the State of Andhra Pradesh for which invoices are raised at the factory gate. In respect of other States, the scooters are first transferred on stock transfer basis to the depots situated in those States. The Regional depot, supply/despatch scooters on receipt of sale proceeds for which invoices are raised. The appellants claimed that since the normal price is ascertainable at the time and place of removal, it should be the basis for the assessable value in respect of depot sales. The price list was approved in so far as the sales at the factory gate in the State of Andhra Pradesh. As regards the sales from Depots, a show cause notice was issued proposing to de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that if there is any doubt about the existance of the factory gate price, the appeal may be remanded to the Collector for ascertaining the ex-factory price. 4. Shri Ganu, appearing for the Department, reiterated the order of the Collector. 5. The question is whether the assessable value in respect of the depot sales can be determined on the basis of the ex-factory price. 6. Before we consider the request of Shri Jain for remanding the matter, we would like to examine the position under Section 4 and also, the judgment of the Supreme Court in Indian Oxygen Ltd. v. C.C.E. [1988 (36) E.L.T. 723 (S.C)]. 7. Section 4 of the Central Excises & Salt Act, 1944 provides for the determination of the assessable value and it reads as follows: "Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he depots situated at Vijayawada, Rajamundry, Vadlapudi, Jeypore and Damanjodi. The Department contended that the price list submitted by the manufacturers in respect of clearances from their depots in which they have claimed abatement on account of freight and handling charges in respect of which they did not produce any evidence, therefore, the manufacturers are not entitled for any deduction in respecct of those claims. 10. The Supreme Court held that: "It is necessary to reiterate the principle upon which the assessable value will have to be determined in this case. The cost of transportation from factory at Visakhapatnam and the depot at Vijayawada cannot be included normally in computation of the value. The value has to be computed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason being that Section 4 contemplates assessable value on the basis of normal price at the factory gate. 12. On the facts of this case, the Collector in his order has not disputed the existence of ex-factory price. They have also approved the price list under Part I claiming ex-factory price in the State of Andhra Pradesh. The Collector treated the depot sales separately and did not determine the assessable value on the basis of ex-factory price. The order of the Collector is opposed to Section 4 and also the decision of the Supreme Court in Indian Oxygen etc. We may also point out that the Collector has not expressed any doubt as to the existence or to the genuineness of the ex-factory price. Therefore, the assessable value in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decisions of the Supreme Court referred to above. The assessable value under Section 4 is the normal price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal. Therefore, the price at which the goods are sold at the factory gate is the price for determining the assessable value. The expenditure incurred after the factory gate is to be excluded from the assessable value. The observation of the Collector that the expenditure incurred by the manufacturer beyond the factory gate namely in maintaining the depot and depot sales should also be taken into account while determining the assessable value at the factory gate runs counter to the scope of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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