THE GOVT. OF INDIA vs BOMBAY TYRES INTERNATIONAL LTD.

The Supreme Court interpreted Section 4 of the Central Excises and Salt Act, 1944, clarifying that the value of an article for excise duty includes not only manufacturing costs and profits but also post-manufacturing expenses such as freight and insurance. The Court upheld the validity of the amended Section 4, stating that its scheme and object remain consistent with the original provision. Additionally, the definition of 'related person' under Section 4(4)(c) was found to be constitutionally sound, and the scope of 'value' under Section 4(4)(d) was clarified to exclude certain packing costs.