UNION OF INDIA & ORS. vs ClBATUL LIMITED

The Supreme Court held that under the Central Excises and Salt Act, 1944, the wholesale price for determining excise duty should be based on the price at which the seller sells the goods to the buyer, not the price at which the buyer sells them to others. The Court affirmed the High Court's decision that the seller, Cibatul Ltd., was the manufacturer of the goods, and thus the wholesale price declared by the seller was the correct basis for excise duty. The Court dismissed the appeals of the Union of India, upholding the High Court's ruling.