COMNR. OF CENTRAL EXCISE, MEERUT vs M/S. UNIVERSAL GLASS LTD.

The Supreme Court addressed the valuation of glass bottles manufactured by M/s Universal Glass Ltd. under Section 35L(b) of the Central Excise Act, 1944, and Rule 6(b)(i) of the Central Excise (Valuation) Rules, 1975. The Court held that the prices charged to other buyers were not comparable to those charged to M/s Jagatjit Industries Ltd. for captive consumption, as there were significant differences in product specifications and market conditions. Consequently, the Court upheld the Commissioner’s decision to determine the assessable value based on the costing method due to the lack of a genuine market for the bottles supplied to JIL.