MAINTAINING PREDICTABILITY IN TAXATION LAW IS OF UTMOST IMPORTANCE: SUPREME COURT OF INDIA The Supreme Court in a recent judgement observed that maintaining predictability in taxation law is of utmost importance, while allowing an appeal by the Revenue department. The Court has further held that the general principles of Section 4(1) of the Central Excise Act, 1944 (CEA), read with Rule 11 of the CEVR, are meant to provide a pathway for determination of the "normal price" and "value" of goods in cases where no alternative methodology is applicable. The Court assumed that the assessable value for the related party sales can be established by referring to the normal price under Section 4(1)(a) of the CEA, which is readily available in the present case. When the normal price that is ordinarily charged in dealings where the price itself is the sole consideration of the transaction is available, as it is here, that price can be transposed onto the related party purchases as well, to arrive at the assessable value. Reddy & Reddy Law Firm handles all aspects of tax requirements for its clients. These include providing services relating to tax assessments, tax advisory, structuring and investment strategy, due diligence and litigation. In the area of litigation, the team represents clients from quasi-judicial authorities and tribunals to the High court and Supreme court. The firm’s approach has been to prepare the case from the first level of litigation to the higher courts to ensure a uniform strategy with relevant evidence to support the positions taken by the taxpayer.