Union Carbide India Ltd. vs Collector Of Central Excise, Calcutta

The Supreme Court addressed the valuation of excisable goods under Section 4 of the Central Excises and Salt Act, 1944, specifically focusing on Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975. The Court held that the 'cost of production' must include the actual cost incurred by the manufacturer along with notional profits, rejecting the Revenue Authorities' stance that only notional sale value should be considered. The judgment clarifies that the actual cost is a relevant factor in determining the value of excisable goods, thereby upholding the appellant's interpretation of the statute.