Situations where transaction value does not apply :

As given in the chart for the valuation scheme under section 4 there are four conditions which have to be fulfilled.

(a) There should be sale of goods

(b) The goods sold should be for delivery at the time and place of removal

(c) The assessee and the buyer of the goods are not to be related persons

(d) The price should be the sole consideration for the sale.

In those cases where any of the above said requirements are missing, the assessable value shall be determined on the basis of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 notified under section 4(1)(b) by Notification No. 45/2000-CE (NT), dated 30.6.2000.