In Brief
The Supreme Court addressed the proper method for valuing excisable goods under the Central Excise Act, 1944. The Court held that when goods are sold and specific statutory conditions are met, valuation must be based on transaction value (including any cash payments above the invoice). When no sale occurs or conditions are not satisfied, authorities must use the prescribed Valuation Rules. Once transaction value is determined for a particular dealer/customer based on supporting evidence, that value applies uniformly to all their transactions during the period, but cannot be applied to other dealers/customers. Matters were remanded for re-adjudication.
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