COMMISSIONER OF CENTRAL EXCISE, INDORE versus M/S. GRASIM INDUSTRIES LTD.

COMMISSIONER OF CENTRAL EXCISE, INDORE versus M/S. GRASIM INDUSTRIES LTD.

The matter involves interpretation of Section 4 and its relationship with Section 3 of the Central Excise Act, particularly on whether charges for supply items (cylinders, tanners, canisters) are to be included in assessable value post-amendment; as there is divergence and issues of seminal importance, the matter is to be referred to a larger Bench for authoritative determination.

Parties
Appellant: Commissioner of Central Excise, Indore; Respondent: Grasim Industries Ltd.
Jurisdiction
India
Judgment Date
30 July 2009
Procedural Posture
Civil Appeal / Order Referring Matter to Larger Bench
Outcome
Matter referred to larger Bench
Legal Topics
Central Excise, Valuation of Excisable Goods, Transaction Value, Charging and Machinery Provisions, Amendment of Section 4 Central Excise Act
Taxation Law Central Excise Valuation of Excisable Goods Transaction Value Charging and Machinery Provisions Amendment of Section 4 Central Excise Act

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2
Sign in to unlock

Parties

Commissioner of Central Excise, Indore

Appellant

Grasim Industries Ltd.

Respondent

Procedural Posture

Civil Appeal / Order Referring Matter to Larger Bench

Legal Issues

  1. 1 Whether Section 4 of the Central Excise Act, 1944 (as substituted w.e.f. 01.07.2000) and the definition of 'Transaction Value' in Clause (d) of sub-Section (3) of Section 4 are subject to Section 3 of the Act
  2. 2 Whether Sections 3 and 4 of the Central Excise Act, despite being interlinked, operate in different fields and what is their real scope and ambit
  3. 3 Whether the concept of 'Transaction Value' makes any material departure from the deemed normal price concept of the erstwhile Section 4(1)(a) of the Act

Ratio Decidendi

The matter involves interpretation of Section 4 and its relationship with Section 3 of the Central Excise Act, particularly on whether charges for supply items (cylinders, tanners, canisters) are to be included in assessable value post-amendment; as there is divergence and issues of seminal importance, the matter is to be referred to a larger Bench for authoritative determination.

Court Disposition

Matter referred to larger Bench

Orders

  • Registry directed to place this order before Hon'ble the Chief Justice of India for appropriate directions.