Case Details: Commissioner of Central Excise vs. Mallya Fine-Chem Pvt. Ltd. (2026) 39 Centax 272 (S.C.)
Judiciary and Counsel Details
- Manoj Misra & Manmohan, JJ.
- S/Shri N. Venkataraman, A.S.G., Rajeev Ranjan, V.C. Bharathi, Ms Priyanka Das, Aman Jha, Advs., & Gurmeet Singh Makker, AOR, for the Petitioner.
- Ms Neha Choudhary, Ms Nitum Jain, Shri Swastik Mishra, Ms Medha Sinha, Advs., & Ms Charanya Lakshmikumaran, AOR, for the Respondent.
Facts of the Case
The appellant was engaged in the manufacture of food colour preparations and procured all requisite inputs independently while supplying the entire production to a buyer under an agreement at mutually agreed prices. The department sought to dispute the declared transaction value by contending that the relationship between the parties was that of a job worker and principal, thereby warranting valuation under Rule 11 read with Rule 9 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), however, held that the relationship between the parties was on a principal-to-principal basis and that exclusive supply and affixation of the buyer’s brand did not establish any related person status or extra-commercial influence. Aggrieved by the said finding, the department preferred an appeal before the Supreme Court challenging the determination of the relationship and the applicability of the valuation provisions. The matter was accordingly placed before the Hon’ble Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that the finding of the CESTAT regarding the relationship between the parties being on a principal-to-principal basis was a finding of fact. The Court observed that such a finding did not suffer from any perversity. It further noted that the challenge raised was against this factual determination of the tribunal. In view of the absence of any perversity in the findings recorded by the CESTAT, the Court declined to interfere. Accordingly, the appeals were dismissed.
