Commissioner Of Central Excise, ... vs M/S. Sri Vigneswara Cotton Mills Ltd.

The Supreme Court addressed the interpretation of Section 4 of the Central Excise Act, 1944, particularly regarding the definition of 'transaction value' and its relationship with Section 3. The Court referred questions concerning the scope and ambit of these sections to a larger bench, emphasizing that excise duty is a levy on manufacture, authorized under Entry 84 of List I of the Seventh Schedule of the Constitution. The holding indicates that the measure of levy must be a competent exercise of legislative power, and the relationship between the nature of the duty and the measure of the levy requires careful consideration.