Union Of India (Uoi) And Ors. vs Kirloskar Oil Engines Ltd.

The Supreme Court allowed the appeal against the Bombay High Court's judgment, which had upheld the vires of Rule 9 of the Central Excise Rules and concluded that the intermediate product was not a marketable commodity. The Court determined that the question of whether the metal strip produced at the intermediate stage is a taxable commodity should be decided by the Excise Authorities, as it is a factual matter requiring evidence. The case was remanded to the Collector (Appeals) for a fresh decision on the issue, including the principle of unjust enrichment, with directions for expeditious disposal.