Constitution Bench (5 Judge Bench) of Supreme Court in the case of Commissioner v. Grasim Industries has held that inclusions that enrich value of article till its clearance, are permissible additions to value under Section 4 (prior to 2000) of the Central Excise Act, 1944 as well as transaction value under amended Section 4 effective from 1-7-2000.

The Apex Court found no discernible difference in statutory concept of transaction value and judicially evolved meaning of normal price in this regard.It approved the judgement in Bombay Tyre International and held that views expressed in para 84 of the judgement in Acer India are not in conflict with the earlier decision.

The Court in order dated 11-5-2018 was of the view that the measure of the levy contemplated in Section 4 will not be controlled by the nature of the levy, and that so long a reasonable nexus is discernible between the measure and the nature of the levy, both Section 3 and 4 would operate in their respective fields.