Commnr. Of Central Excise, Tamil Nadu vs M/S. Southern Structurals Ltd

The Supreme Court addressed the issue of undervaluation of goods under Section 4 of the Central Excise Act, 1944, holding that the respondent company had contravened the provisions by not including inspection charges and escalation charges in the assessable value of the goods. The Court affirmed the validity of the Show Cause Notice issued against the respondent for the alleged suppression of value and non-payment of duty, thereby upholding the demand for duty amounting to Rs.61,44,084/- and other charges. The judgment reinforces the principle that all components of the price must be included in the assessable value for excise duty calculations.