ATIC INDUSTRIES LTD. vs H.H. DAVE, ASSTT. COLLECTOR OF CENTRAL EXCISE AND ORS.

The Supreme Court held that under Section 3(1) and Section 4(a) of the Central Excise and Salt Act, 1944, the assessable value for excise duty should be based on the price at which the manufacturer sold the dye-stuffs to the wholesalers, minus an 18% trade discount. The Court found that the prices charged by wholesalers to distributors could not be used for assessment as there was no open market for the goods. The appeal was allowed, reversing the decisions of the Central Government and the High Court.