Union Of India (Uoi) And Ors. vs Nirlon Synthetic Fibres & Chemicals Co.

The Supreme Court upheld the Bombay High Court's decision that the demand for excise duty on nylon yarn was invalid due to violation of natural justice, as the respondent was not granted a hearing. The Court affirmed that the respondent's nylon yarn, used for manufacturing 'nylon tyre cord wrap sheet', was not an excisable commodity. The Court also confirmed the High Court's order allowing the respondent to receive interest on the excise duty deposited, thereby dismissing the Union of India's appeal as lacking merit.