COMMNR.OF CENT.EXCISE & CUSTOMS vs M/S.VENUS CASTINGS P.LTD.

The Supreme Court ruled that a manufacturer who opts for duty payment under Rule 96ZO(3) of the Central Excise Rules cannot deny the right to determine actual production under Section 3A(4) of the Central Excise Act, 1944. The Court emphasized that duty must be based on actual production and not merely on production capacity. The matter was remanded to the Commissioner for re-determination of duty based on actual production, affirming the principle that manufacturers can apply for duty assessment based on actual production during the operation of their chosen payment option.