M/S Pawan Biscuits Co. Pvt. Ltd vs Collector Of Central Excise Patna

The Supreme Court held that the assessable value of biscuits manufactured by the appellant for Britannia Industries Ltd. should not be based on Britannia's wholesale price, as the relationship between the parties was one of principal to principal, not principal to agent, as per the agreement dated 15.12.1986. The Court reiterated that post-manufacturing expenses should not be included in the assessable value, referencing the precedent set in M/s Ujagar Prints and Others v. Union of India (1989) 3 SCC 488. The Court ruled in favor of the appellant, overturning the lower authorities' decisions that had classified the appellant as an agent of Britannia.