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Section 4 Section 4 Section 4

The document discusses a disagreement between K. Parasaran, the Solicitor General of India, and other parties about how to determine the value of excisable goods for the purposes of levying excise duty. Parasaran argued that value should be based on the manufacturer's wholesale price, while others contended it should be limited to manufacturing costs and profits. The judges laid down principles stating that the new valuation section of the statute had the same objectives and central principles as the old version, and aimed to more comprehensively determine the real value of excisable articles.

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46 views1 page

Section 4 Section 4 Section 4

The document discusses a disagreement between K. Parasaran, the Solicitor General of India, and other parties about how to determine the value of excisable goods for the purposes of levying excise duty. Parasaran argued that value should be based on the manufacturer's wholesale price, while others contended it should be limited to manufacturing costs and profits. The judges laid down principles stating that the new valuation section of the statute had the same objectives and central principles as the old version, and aimed to more comprehensively determine the real value of excisable articles.

Uploaded by

gs randhawa
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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exclusion of post manufacturing expenses and post-manufacturing profits is necessarily

involved in the first principle and helps to achieve the second. On the other hand, the
contention of Sri K. Parasaran, learned Solicitor General/Attorney General of India, who
appeared for the Union of India, was that "the value of. an excisable article for the
purposes of the levy must be taken at the price charged by the manufacturer on a
wholesale transaction, the computation being made strictly in terms of the express
provisions of the statute.....(and that) there is no warrant for confining the value to the
assessee's manufacturing cost plus manufacturing profit". According to him, "though the
duty of excise is a levy on the manufacture of goods, it was open to Parliament to adopt
any basis for determining the value of an excisable article, that the measure for assessing
the levy need not correspond completely to the nature of the levy and (that) no fault can
be found with the measure so long as it bears a nexus with the charge."

In the course of their judgment, the learned Judges laid down the following principles:

(a) In enacting new Section 4, Parliament did not intend to bring into existence a scheme
of valuation different from that embodied in the old Section 4. The object and purpose
remained the same as also the central principle at the heart of the scheme. The
new Section 4 embodies a much more comprehensive and clearly enunciated scheme for
the determination of the real value of an excisable article.

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