COMMNR. OF CENTRAL EXCISE, CHANDIGARH vs M/S. PEPSI FOODS LTD.

The Supreme Court ruled on the interpretation of Section 4(4)(b) of the Central Excise Act, 1944, clarifying that the place of removal for excise duty purposes is the manufacturer's factory, not the depot of a related person. The Court held that the Revenue's insistence on considering the depot as the place of removal was incorrect, as the sale to the related person occurred at the factory gate. Consequently, the Court upheld the Tribunal's decision, allowing the appeal and dismissing the Revenue's demand for additional duty.