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2016 (11) TMI 1209 - AT - Central ExciseValuation - assessable value - ex-factory sales - Held that: - the factory gate sale prices or ex-factory price are the genuine price and they can be the basis for the assessment of the goods cleared from the depot, the confirmation of demand by the authority is contradictory to the conclusion reached by him and will not therefore sustain. The case laws relied upon by the assessee on settled law as laid down by Hon'ble Supreme Court, in Indian Oxygen case [1988 (7) TMI 58 - SUPREME COURT OF INDIA], that so long as there is a genuine ex-factory price there can be no question of taking into account the depot price for arriving at the assessable value are on all fours with the facts of this case. Disallowance of certain deductions claimed in the declarations - Held that: - when cash discount /sale rebate is available to all buyers, the same is permissible deduction. As regards abatements on interest on receivables, it is held that such interest is a post removal expense and hence a permissible deduction. With regard to abatement claimed on freight on sales, it is seen related to expenses incurred by appellant on account of freight charges from depot to the buyer's premises which are clearly post removal expenses and thereby a permissible deduction. The acceptability and genuineness of ex factory price is incorrect In the light of the discussions herein above, when it has been clearly held that the ex-factory prices are genuine prices and they can be the basis for the assessment of goods cleared from the depot, the department appeal will have no legs to stand on and cannot therefore survive - appeal of Department dismissed - decided in favor of assessee.
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