Commissioner Central Excise vs M/S.United Spirits Ltd.& Anr

The Supreme Court addressed the legality of Usership Agreements and Manufacturing Agreements between a manufacturer of Indian Made Foreign Liquor (IMFL) and various liquor manufacturers. The Court held that the agreements, which stipulate a principal-to-principal basis for transactions and outline the pricing structure including Ex-Distillery Price (EDP) and service charges, are valid under contract law. The judgment clarified that the respondent's role in providing technical know-how and marketing support does not alter the nature of the agreements, affirming their enforceability under Indian law.