COMMISSIONER OF CENTRAL EXCISE vs M/S. INOX AIR PRODUCTS LTD. THROUGH MANAGER

The Supreme Court addressed the applicability of charges levied by manufacturers of industrial gases under Section 4 of the Central Excise Act, 1944, determining whether these charges should be included in the transaction value for excise duty calculation. The court referred to previous conflicting judgments in Union of India v. Bombay Tyre International Ltd. and Commissioner of Central Excise, Pondicherry v. Acer India Ltd., and posed questions regarding the relationship between Sections 3 and 4 of the Act. The court held that the measure of excise duty must be determined by statutory provisions, allowing legislative discretion in defining the levy.