KIRLOSKAR BROS. LTD. vs COMNR. OF CENTRAL EXCISE, PUNE

The Supreme Court examined the classification of buyers under Section 4 of the Central Excise and Salt Act, 1944, determining that the Customs Excise and Gold (Control) Appellate Tribunal (CEGAT) erred in concluding that bulk buyers did not constitute a different class. The Court held that while classification based on commercial considerations is permissible, it must be rational and identifiable. The appeal by the Revenue was allowed, affirming that the lower price for bulk buyers was unjustified as no rational basis for differentiation was established.