COLLECTOR OF CENTRAL EXCISE vs POND'S INDIA LTD.

The Supreme Court held that under Section 4(4)(d)(i) of the Central Excises and Salt Act, 1944, the cost of packing must be included in the assessable value of goods for excise duty if such packing is necessary for the goods to be sold in the wholesale market at the factory gate. The Court found that the cost of secondary packing, which included outer cartons for transportation, was relevant to the assessment of excise duty. The Tribunal's decision to exclude this cost was overturned, and the case was remanded for further proceedings consistent with this ruling.