Commissioner Of Customs And C.E.Nagpur vs M/S. Ispat Industries Ltd

The Supreme Court addressed whether excise duty could be levied on freight charges incurred for transporting goods from the factory to the buyer's premises under Section 4 of the Central Excise Act, 1944. The Court held that since the manufacturer, Ispat Industries, retained ownership of the goods during transit due to an insurance policy, the buyer's premises should be considered the place of removal for excise duty purposes. Consequently, the freight charges paid by buyers were to be included in the excise duty calculation, affirming the lower authority's decision.