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

The Supreme Court addressed the applicability of Section 4 of the Central Excise Act, 1944 regarding the valuation of goods for excise duty. The Court held that the charges collected by manufacturers for containers provided to customers are to be included in the transaction value for the purpose of duty assessment. The matter was referred to a larger bench due to conflicting judgments in Union of India v. Bombay Tyre International Ltd. and Commissioner of Central Excise, Pondicherry v. Acer India Ltd., necessitating clarification on the relationship between Sections 3 and 4 of the Act.