DELHI CLOTH & GENERAL MILLS CO. LTD. vs UNION Of INDIA & ORS.

The Supreme Court held that Section 4 of the Central Excise & Salt Act, 1944 does not allow the maximum price fixed under the Essential Commodities Act, 1955 to control the determination of the wholesale cash price for excise duty purposes. The Court emphasized that the excise authorities must determine the wholesale cash price based on bona fide commercial practices and not solely on government-fixed maximum prices. The appeal was allowed, setting aside the High Court's order and remanding the case for proper determination of the wholesale cash price.