COMMISSIONER OF CUSTOMS AND C.E.NAGPUR vs M/S. ISPAT INDUSTRIES LTD.

The Supreme Court addressed whether excise duty can 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 ownership of goods remained with the manufacturer, M/s Ispat Industries, during transit, the buyer's premises should be considered the place of removal, thus allowing the inclusion of freight charges in the excise duty calculation. The appeal by the Commissioner of Customs was dismissed, affirming the lower authority's decision.