COMMISSIONER OF CENTRAL TAX BENGALURU EAST COMMISSIONERATE, BENGALURU, KARNATAKA vs M/S VOLVO INDIA LTD.

The Supreme Court addressed the issue of whether certain charges levied by manufacturers of industrial gases are to be included in the valuation for excise duty under Section 4 of the Central Excise Act, 1944. The Court referred questions regarding the interpretation of 'transaction value' and the relationship between Sections 3 and 4 of the Act to a larger bench due to conflicting prior judgments in Union of India v. Bombay Tyre International Ltd. and Commissioner of Central Excise, Pondicherry v. Acer India Ltd. The Court emphasized the need for clarity on the nature and measure of excise duty, affirming that legislative authority must guide the measure of levy.