COMMISSIONER OF CENTRAL EXCISE vs M/S. GRASIM INDUSTRIES LTD. THROUGH ITS SECRETARY

The Supreme Court ruled that the amended Section 4 of the Central Excise Act, 1944, which introduced the concept of 'transaction value', does not alter the principle established in Collector of Central Excise, Madras Vs. M/s Indian Oxygen Ltd. regarding the non-inclusion of certain charges (like packing and service charges) in the assessable value of excisable goods. The Court held that such charges recovered by manufacturers for containers and canisters should not be added to the price of goods for duty assessment under Section 4. Consequently, the Tribunal's decision was upheld, affirming the existing legal interpretation.