Kirloskar Brothers Ltd vs Commissioner Of Central Excise, Pune

The Supreme Court addressed the classification of buyers under Section 4 of the Central Excise and Salt Act, 1944, determining that while an assessee can classify buyers based on commercial considerations, such classifications must be rational and identifiable. The Court upheld the CEGAT's ruling that the appellant failed to establish a distinct class of bulk buyers justifying a lower price, leading to the dismissal of the appellant's appeal. The judgment reinforced the principle that price differentiation must be based on substantial commercial rationale, not arbitrary distinctions.