M/S. PAWAN BISCUITS CO. P. LTD. vs COLLECTOR OF CENTRAL EXCISE PATNA

The Supreme Court addressed the assessable value of biscuits manufactured by the appellant for Britannia Industries Ltd. under an agreement that established a principal-principal relationship, not principal-agent. The Court held that the assessable value should not consider post-manufacturing expenses, reaffirming the principle established 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 Tribunal's decision that treated the appellant as an agent of Britannia.