Escorts Ltd vs Commissioner Of Central Excise,Delhi - ...

The Supreme Court upheld the decision of the Customs, Excise & Gold (Control) Appellate Tribunal, affirming that the valuation of goods captively consumed must be based on the market price of goods directly sold, as established in Ashok Leyland Ltd. v. Collector of Central Excise, Madras (2002). The Court clarified that Rule 6 of the Central Excise Valuation Rules applies only when prices are unascertainable, and since there was a direct sale of 2%, the valuation must reflect that market price. The appeals were dismissed, but the penalty imposed by the Collector was set aside.