Vip Industries Ltd. vs Commissioner Of Cus. & C. Ex., ...

The Supreme Court addressed the applicability of Section 4 of the Central Excise Act, 1944, specifically regarding the valuation of excisable goods when equalized freight is included in the price. The Court reaffirmed the principle established in Union of India v. Bombay Tyre International Limited, holding that the Department cannot include transportation costs from the factory to the depot in the computation of value for excise duty. The judgment clarified that the amended provisions of Section 4, effective from 28th February 1996, govern the valuation process, thereby upholding the exclusion of transportation costs from the price for delivery at the place of removal.