M?S. PAWAN BISCUITS CO. PVT. LTD. versus COLLECTOR OF CENTRAL EXCISE, PATNA

M?S. PAWAN BISCUITS CO. PVT. LTD. versus COLLECTOR OF CENTRAL EXCISE, PATNA

The assessable value must include appellant's manufacturing costs and profit and also the cost of raw materials supplied by Britannia, but exclude Britannia's profits and expenses incurred after manufacture, in accordance with the principle in Ujagar Prints decisions.

Parties
Appellant: PAWAN BISCUITS CO. PVT. LTD.; Respondent: COLLECTOR OF CENTRAL EXCISE, PATNA; Agreement Counterparty: Britannia Industries Ltd.
Jurisdiction
India
Judgment Date
20 July 2000
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal allowed
Legal Topics
Excise Duty, Valuation of Manufactured Goods, Principal to Principal Agreements
Taxation Commercial Law Excise Duty Valuation of Manufactured Goods Principal to Principal Agreements

Case Brief

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Parties

PAWAN BISCUITS CO. PVT. LTD.

Appellant

COLLECTOR OF CENTRAL EXCISE, PATNA

Respondent

Britannia Industries Ltd.

Agreement Counterparty

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether assessable value of biscuits manufactured under agreement for Britannia should include cost of raw material supplied by Britannia and/or Britannia's profits and post-manufacturing expenses

Ratio Decidendi

The assessable value must include appellant's manufacturing costs and profit and also the cost of raw materials supplied by Britannia, but exclude Britannia's profits and expenses incurred after manufacture, in accordance with the principle in Ujagar Prints decisions.

Court Disposition

Appeal allowed

Orders

  • Excise authorities are at liberty to determine the amount of excise duty afresh in accordance with law.
  • No order as to costs.