Collector Of Central Excise, Kanpur vs Lml Ltd. (Scooter Unit), Kanpur

The Supreme Court addressed the applicability of Rule 6(a) of the Central Excise (Valuation) Rules, 1975 in determining the excise duty on scooter sales by the respondent. The Court upheld the CEGAT's decision that prior to 4-10-1985, the valuation was correctly done under Rule 6(a), while post that date, the price charged from dealers in U.P. should be considered for excise duty across India. The Court refrained from deciding on the issue of unjust enrichment, stating it is a factual determination for the Assistant Commissioner under Section 11D of the Central Excise Act.