I.T.C. LTD vs COLLECTOR OF CENTRAL EXCISE, PATNA

The Supreme Court upheld the Tribunal's decision that excise duty is leviable on samples of cigarettes sent for testing under Section 3 of the Central Excise Act, 1944. The Court clarified that the manufacturing process is complete when cigarettes emerge as sticks, and the subsequent packing is not incidental to manufacture but to sale. The appeals were dismissed, affirming the duty and penalties imposed by the assessing authorities.