COLLECTOR OF CENTRAL EXCISE vs THE HIMALAYAN CO-OPERATIVE MILK PR.U.LTD

The Supreme Court interpreted the Notification No. 105/80-C.E. under the Central Excise and Salt Act, 1944, specifically addressing Rule 8(1) of the Central Excise Rules, 1944. The Court established that the exemption from excise duty applies only to the capital investment directly related to the manufacturing of liquid nitrogen, and not to the total investment across all products manufactured by the respondent. The Court upheld the Appellate Tribunal's decision granting the exemption, confirming that the capital investment for the liquid nitrogen plant was below the stipulated limit of ten lakhs, thus entitling the manufacturer to the exemption.