ADlTYA MILLS LTD. vs UNION OF INDIA

The Supreme Court upheld the decision of the Central Excise & Gold Control Appellate Tribunal, affirming that PPRF yarn is taxable under Tariff Item 68 of the Central Excises and Salt Act, 1944. The Court clarified that excise duty is levied on the manufacture of goods, and a new commodity must be commercially known and distinct for it to be considered manufactured. The appellant's claim for refund was rejected as the Tribunal found no basis for treating PPRF yarn as a separate commodity exempt from duty under the relevant tariff item.