Commissioner Of Central Excise, Pune vs Kripa Chemicals Pvt. Ltd

The Supreme Court addressed two key issues regarding the calculation of cost of production for excisable products. It reaffirmed the principle established in Collector of Central Excise, Pune v. Daiichi Karkaria Limited (1999) that modvatted excise duty on raw materials should not be included in the cost of production. Additionally, it clarified that the profit earned by the job worker must be considered along with the value of raw materials and manufacturing expenses in determining the excisable value, as per the guidelines from Ujagar Prints etc. v. Union of India (1989). The appeal was disposed of in accordance with these principles.