Commissioner Of Central Excise, Surat vs M/S. Surat Textiles Mills Ltd. & Ors

The Supreme Court addressed the issue of whether advertising expenses incurred by manufacturers and passed on to dealers should be included in the assessable value of goods under the Central Excise Act. Citing the precedent in Philips India Ltd. vs. CCE, Pune (1997) 6 SCC 31, the Court held that such expenses should not be included in the assessable value. The Court also referred to M/s Ujagar Prints & Ors. vs. Union of India (1989) 3 SCC 531, affirming that only the cost of raw materials and processing should be considered for valuation. The appeals by the Commissioner of Central Excise were dismissed, upholding the CEGAT's decision.