The ratio in the context of Section 64A of the Sale of Goods Act is that the section is applicable when an increase or decrease in excise or customs duty on raw materials directly impacts the cost of the finished goods that are to be supplied under a contract, especially when the goods are to be identified by description in the contract. The section aims to ensure fairness by allowing the seller or buyer to adjust the contract price in response to such duty changes, preventing undue advantage or detriment to either party resulting from state-imposed duty modifications after the contract has been concluded (!) .

Furthermore, the interpretation of Section 64A should be purposeful and aligned with its legislative intent, which is to prevent unfair gains or losses due to changes in duties imposed by the state. When the contract specifies goods by description, and the raw material's increased duty affects the cost of producing those goods, the section is attracted, and the seller is entitled to recover the additional costs or the buyer to deduct the corresponding amount. The overarching principle is that the section promotes fairness and justice by accommodating the impact of duty changes on the contractual obligations, especially in transactions involving the state or state-imposed taxes (!) .