COMMISSIONER CENTRAL EXCISE vs M/S.UNITED SPIRITS LTD.

The Supreme Court addressed the issue of whether the sale of Indian Made Foreign Liquor (IMFL) by manufacturers under agreements with the respondent constituted a sale under the Central Excise Act, 1944. The Court held that the Ex-Distillery Price (EDP) paid to liquor manufacturers includes all costs and service charges, thus qualifying as a sale under Section 4 of the Act. The judgment clarified that the respondent's role in marketing and promoting the brands does not alter the nature of the transaction, affirming the applicability of excise duty on the EDP.