DUGAR ELECTRONICS vs COLLECTOR OF CENTRAL EXCISE, CALCUTTA

The Supreme Court addressed whether the price declared by a manufacturer of tape recorders should be accepted as the assessable value for excise duty when key components (moulds) were supplied free of cost by a third party (Pieco). The Court upheld the Tribunal's finding that the declared price did not represent the full commercial value because the free supply of moulds constituted an element of consideration. Consequently, the Court affirmed the rejection of the declared price in favor of a valuation based on the price at which the goods were sold to dealers.