Commnr. Of Central Excise, Chandigarh vs M/S. Pepsi Foods Ltd

The Supreme Court held that under Section 4(4)(b) of the Central Excise Act, 1944, the place of removal for excise duty purposes is the factory gate of the manufacturer, not the depot of a related person. The Court affirmed the Tribunal's decision that the cost of transportation from the factory to the depot should be excluded from the assessable value for duty calculation. Consequently, the appeal by the Revenue was dismissed, upholding the Tribunal's ruling in favor of the respondent-assessee, M/s. Pepsi Foods Ltd.