M/S. D.J. MALPANI vs COMMISSIONER OF CENTRAL EXCISE, NASHIK

The Supreme Court held that the amount termed 'Dharmada' charged by the appellant-assessee is not part of the assessable value under Section 4 of The Central Excise Act, 1944. The Court distinguished the case from Collector vs. Panchmukhi Engineering Works and Tata Iron & Steel Co. Ltd. vs. Collector of Central Excise, Jamshedpur, asserting that Dharmada is a voluntary charitable donation and not a compulsory charge. Consequently, the Court ruled in favor of the appellant, stating that no excise duty is payable on the Dharmada component.