COMMISSIONER OF CENTRAL EXCISE, BELGAUM vs M/S. AKAY COSMETICS PVT. LTD.

The Supreme Court examined the applicability of Section 4 of the Central Excise Act, 1944, specifically addressing whether deductions for costs such as freight and handling charges could be made from the assessable value determined based on the selling price of a related person, M/s Nemaru. The Court held that since M/s Nemaru was a related person under Section 4(4)(c), the assessable value must be based on their selling price, and deductions for additional costs were not permissible as they contributed to the selling price. The appeal by the department was thus upheld, affirming the Assistant Collector's decision regarding the assessable value.