In Brief
A manufacturer collected voluntary charitable contributions (Dharmada) from customers alongside the sale price of goods and credited them to a trust for charitable purposes. The Central Excise authorities sought to include these amounts in the assessable value of goods for duty purposes. The Supreme Court held that Dharmada amounts held in trust for charity do not constitute consideration for the transfer of goods and cannot be included in the assessable value. Only the actual price paid for the goods themselves is subject to excise duty.
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