NIRLON SYNTHETIC FIBRES &CHEMICALS LIMITED vs THE COLLECTOR OF CENTRAL EXCISE

The Supreme Court ruled that the recovery of caprolactam from waste during the manufacturing process does not constitute a separate manufacturing process subject to excise duty under the Central Excise Act. The Court emphasized that the marketability of a product is a crucial factor in determining excisability, as established in previous judgments like Jagatjit Cotton Textile Mills Ltd. vs. Collector of Central Excise. The appeal was allowed, overturning the decisions of the lower authorities that had imposed duty on the recovered caprolactam.