Central Excise Act, 1944 – ss.3 and 4 – Whether s.4 of the Central Excise Act, 1944 (as substituted with effect from 1-7-2000) and the definition of “transaction value” in clause (d) of sub-section (3) of s.4 are subject to s.3 of the Act – Held: The observations made in Acer India Ltd. to the effect that ‘transaction value’ defined would be subject to the charging provisions contained in s.3 of the Act will have viewed in the context of a situation where an addition of the value of a non-dutiable item was sought to be made to the value of a dutiable item for the purpose of determination of the transaction value of the composite item – This is the limited context in which the subservience of s.4(3)(d) to s.3 was expressed and has to be understood – If so understood, the views expressed in that paragraph of Acer India Ltd. case cannot be read to be in conflict with the decision of Bombay Tyre International Ltd..

Central Excise Act, 1944 – ss.3 and 4 – Whether ss. 3 and 4 of the Act despite being interlinked, operate in different fields – Held: The measure of the levy contemplated in s.4 of the Act is not controlled by the nature of the levy – So long a reasonable nexus is discernible between the measure and the nature of the levy both ss. 3 and 4 would operate in their respective fields – The view expressed in Bombay Tyre International Ltd. is the correct exposition of the law in this regard.

Central Excise Act, 1944 – ss.3 and 4 – Whether the concept of “transaction value” makes any material departure from the deemed normal price concept of the erstwhile s.4(1)(a) of the Act – Held: “Transaction value” as defined in s.4(3)(d) brought into force by the Amendment Act, 2000, statutorily engrafts the additions to the ‘normal price’ under old s.4 as held to be permissible in Bombay Tyre International Ltd. besides giving effect to the changed description of the levy of excise introduced in s.3 of the Act by the Amendment of 2000 – There is no discernible difference in the statutory concept of ‘transaction value’ and judicially evolved meaning of ‘normal price’.