COMMNR. OF CENTRAL EXCISE, HYDERABAD vs M/S. DETERGENTS INDIA LTD.

The Supreme Court interpreted Section 4(1)(a) proviso (iii) and Section 4(4)(c) of the Central Excise and Salt Act, emphasizing the definition of 'related person' and the valuation of goods sold to such persons. The Court held that the price at which goods were sold by Detergents India Limited (DIL) to its holding company Shaw Wallace Company Limited (SWCL) should be the basis for determining assessable value, as no mutuality of interest was established between the two. The judgment of the lower authorities was set aside, favoring the assessee.