COLLECTOR OF CENTRAL EXCISE, PUNE vs DAI ICHI KARKARIA LTD

The Supreme Court addressed the valuation of excisable goods under Section 4 of the Central Excises and Salt Act, 1944, determining whether the assessable value of an intermediate product should include the excise duty paid on raw materials. The Court held that the cost of raw material for the manufacturer should exclude the excise duty, as the manufacturer is entitled to credit for this duty under the MODVAT scheme. The decision of the Central Excise and Gold Control Appellate Tribunal was upheld, favoring the manufacturers in the assessment of excise duty.