UNION OF INDIA & ORS. vs PLAYWORLD ELECTRONICS PVT. LTD. & ANR.

The Supreme Court held that the price charged by the respondent company for goods sold to Bush India Ltd. was the correct assessable value for excise duty under Section 4(1)(a) of the Central Excises and Salt Act, 1944. The Court emphasized that tax planning is legitimate only within the law's framework, and colorable devices cannot be part of it. The High Court's decision to quash the Show Cause Notice was upheld, affirming that there was no misdeclaration of value by the assessee company.