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Understanding Normal Price in Section 4

The normal price mentioned in the new section is the wholesale price charged by the assessee in the ordinary course of business. This value may vary according to certain circumstances outlined in the proviso. The phrase "that is to say" clarifies that normal price is the price at which goods are ordinarily sold by the assessee to a non-related wholesale buyer for delivery at the time and place of removal. Deductions mentioned in Section 4 may not be exhaustive, and further deductions could be claimed depending on the nature of the particular assessee's case.

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5 views1 page

Understanding Normal Price in Section 4

The normal price mentioned in the new section is the wholesale price charged by the assessee in the ordinary course of business. This value may vary according to certain circumstances outlined in the proviso. The phrase "that is to say" clarifies that normal price is the price at which goods are ordinarily sold by the assessee to a non-related wholesale buyer for delivery at the time and place of removal. Deductions mentioned in Section 4 may not be exhaustive, and further deductions could be claimed depending on the nature of the particular assessee's case.

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gs randhawa
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The normal price mentioned in new Section 4(l)(a) is the priced at which the goods are

ordinarily sold by the assessee in the course of wholesale trade. It is the wholesale price
charged by him. This is also the scheme underlying old Section 4.

(e) The value of excisable goods determined under new Section 4(l)(a) may very
according to certain circumstances, a fact evident from the three clauses in the proviso
appended to clause (a) of sub-section (1).

(f) The phrase "that is to say" following the expression "normal price" in new Section 4(l)
(a) make it clear that normal price is the 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 where the buyer is not a related person and the price is the sole consideration
for the sale.

(g) The deductions specifically mentioned in Section 4 may not be exhaustive. The
question "whether any further deductions can be claimed beyond those already mentioned
in the statute will depend on the nature of those claims in the case of a particular
assessee."

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