In Brief
Manufacturers of industrial gases and allied products charged customers separately for providing containers and related services (packing, wear and tear, facility, delivery charges) without reflecting these amounts in sale invoices. The Supreme Court determined whether such charges must be included in the assessable value for excise duty under Section 4 of the Central Excise Act, 1944 as amended in 2000. The Court held that the measure of excise duty need not be controlled by its nature (a tax on manufacture) so long as reasonable nexus exists. The statutory concept of "transaction value" (post-2000 amendment) mirrors the judicially evolved "normal price" concept, encompassing value additions till clearance. Container-related charges are includable if they constitute amounts buyers must pay in connection with the sale, consistent with the CENVAT framework introduced in the 2000 Amendment.
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