Industrial Cables India Ltd. vs Collector Of C. Ex., Chandigarh

The Supreme Court upheld the decision of the Central Excise Gold (Control) Appellate Tribunal, affirming that the appellants were liable to pay excise duty on goods consumed captively under the amended Rules 9 and 49 of the Central Excise Rules. The Court clarified that the benefit of Notification No. 68/71-C.E. could only be claimed if the goods were cleared as such, and since the Appellate Collector left the question of manufacturing open, the Department was entitled to assert that the appellants were manufacturing sheets, not tapes. The appeal was dismissed, confirming the liability for excise duty.