THE COMMISSIONER OF CENTRAL EXCISE vs M/S. GRASIM INDUSTRIES LTD. THROUGH MANAGER

The Supreme Court addressed the interpretation of Section 4 of the Central Excise Act, 1944, particularly regarding the definition of 'transaction value' and its implications for excise duty assessment. The Court held that the charges collected by manufacturers for containers provided to customers are to be included in the value for duty calculation under Section 4, emphasizing the legislative authority to define the measure of levy. The matter was referred to a larger bench due to conflicting prior judgments, specifically Union of India v. Bombay Tyre International Ltd. and Commissioner of Central Excise, Pondicherry v. Acer India Ltd.