Collector Of Central Excise, Meerut vs M/S. Surya Roshni Ltd.

The Supreme Court held that payments made by a transporter to customers for breakages and losses during transit cannot be classified as insurance or included in the cost of transportation. The Court clarified that such payments are merely compensatory and do not equate to the procurement of insurance coverage. Consequently, the appeal was allowed, and the previous judgment was set aside without any order as to costs.