COMNR. OF CENTRAL EXCISE, NEW DELHI vs M/S. VIKRAM DETERGENT LTD.

The Supreme Court upheld the decision of the Customs Excise and Gold (Control) Appellate Tribunal, affirming that bank charges for collection of sale proceeds and discounts for damages are allowable deductions in computing the value of manufactured goods under Section 4 of the Central Excise and Salt Act, 1944. The Court clarified that discounts for damaged goods are legitimate deductions as they represent allowances to wholesalers for damages incurred during transit. The Court rejected the appellant's argument that such discounts were not known at the time of removal from the factory, thus affirming the Tribunal's ruling.