TMI Blog1995 (12) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... filed price list declaring the price at the factory gate as assessable value under Section 4(1)(a) of the Central Excises Salt Act, 1944. They also declared in the price list that prices declared in the price list are only for sales at factory gate and that the prices at their depots would be different as the same would be loaded with elements like freight, insurance, and depot distribution expenses as well as adjustment for local taxes. The Assistant Collector found a comparison of factory gate price with depot prices that depot prices were 7 to 18% higher than factory prices and initiated proceeding with issue of show cause notice as to why the depot price should, not be adopted as assessable value. Assistant Collector, thereafter, by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore the factory gate price declared by them. The ld. Counsel also draws support from the Supreme Court decision in the case of Indian Oxygen Ltd. v. Collector of Central Excise - 1988 (36) E.L.T. 723, wherein it was held that if the ex-factory price is acceptable value. However, a perusal of the Assistant Collector s order shows that it is not as if the Assistant Collector has accepted the declared factory gate price as genuine. The observation in the Assistant Collector s order relied upon by the appellants, has also been made by him in order to pave the way for adding the elements of distribution expenses and interest on inventory to the price at the factory gate. On the other hand, in the Assistant Collector s order gate price cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory gate prices should not be one that is unreal. Therefore, in the face of higher depot prices not satisfactorily explained, then on that basis, the lower authorities, herein, would be justified in considering the factory gate price as unreal. In such a context, the quantum of the sales at factory gate and depots also assumes significance and in this case the sales at factory gate is less than 3% and the sales at the depots is more than 97%. The factory gate sales considered in the Shree Durga Glass case (supra), was much higher at 25% to 30%. However, the lower authorities erred in the mode adopted in determination of the assessable value by adding the elements of distribution expenses and interest on inventory to the price decla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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