COMMNR. OF CENTRAL EXCISE, BHUBNESHWAR vs M/S. IFGL REGRACTORIES LTD.

The Supreme Court upheld the Tribunal's decision that the benefits derived by the Respondents from the Advance Intermediate Licences, issued under the Duty Exemption Scheme, do not constitute 'additional consideration' for the purpose of excise duty under Section 4 of the Central Excise Act. The Court clarified that such benefits are statutory in nature and should not be treated as part of the contract price between the buyer and seller. Consequently, the appeal by the Appellants was dismissed, affirming the Tribunal's ruling in favor of the Respondents.