A.K.ROY & ANR. versus VOLTAS LIMITED

A.K.ROY & ANR. versus VOLTAS LIMITED

Where sales are made to wholesale dealers at arm's length and in the ordinary course of business, the price charged to them, less trade discount, constitutes the 'wholesale cash price' under Section 4(a) of the Central Excises & Salt Act, 1944, for valuation of excisable goods, even if the bulk of sales are direct to consumers. It is not necessary for a wholesale market to be physically present, or for there to be a large number of wholesale transactions.

Parties
Appellant: A. K. Roy & Anr.; Respondent: Voltas Limited
Jurisdiction
India
Judgment Date
01 December 1972
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeal dismissed
Legal Topics
Excise Duty, Valuation Under Central Excises & Salt Act 1944, Trade Discount, Wholesale Cash Price, Retail Price
Tax Law Excise Duty Valuation Under Central Excises & Salt Act 1944 Trade Discount Wholesale Cash Price Retail Price

Case Brief

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Parties

A. K. Roy & Anr.

Appellant

Voltas Limited

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether excise duty should be levied on 'wholesale cash price' or on list price for sales to consumers under Section 4 of the Central Excises & Salt Act, 1944
  2. 2 Definition and criteria for 'wholesale market' and 'wholesale cash price'
  3. 3 Applicability of trade discount in calculation of value for excise

Ratio Decidendi

Where sales are made to wholesale dealers at arm's length and in the ordinary course of business, the price charged to them, less trade discount, constitutes the 'wholesale cash price' under Section 4(a) of the Central Excises & Salt Act, 1944, for valuation of excisable goods, even if the bulk of sales are direct to consumers. It is not necessary for a wholesale market to be physically present, or for there to be a large number of wholesale transactions.

Court Disposition

appeal dismissed

Orders

  • No order as to costs.