I.T.C.Limited vs Collector Of Central Excise, Patna

The Supreme Court held that under Section 3 of the Central Excise Act, 1944, excise duty is leviable on cigarettes once they emerge as sticks, regardless of subsequent packing processes. The Court affirmed the Tribunal's ruling that samples sent for quality testing within the factory are subject to excise duty, as the manufacturing process is deemed complete at the stick stage. The appeals were dismissed, upholding the duty and penalties imposed by the assessing authorities.