SNOW WHITE INDUSTRIAL CORPORATION, MADRAS vs COLLECTOR OF CENTRAL EXCISE, MADRAS

The Supreme Court analyzed the nature of the agreement between the assessee and the selling agents under the Central Excises and Salt Act, 1944, specifically Sections 4(1)(a) and 35-L(b). The Court held that the agreement constituted a contract of agency rather than a contract of sale, as the title to the goods remained with the appellants. Consequently, the assessable value for excise duty was determined based on the selling price by the agents, allowing for permissible deductions, thus upholding the Tribunal's decision.