Commnr. Of Central Excise, Indore vs M/S S. Kumars Ltd. & Ors

The Supreme Court addressed the valuation of excise duty under the Central Excise Act, 1944, specifically interpreting Section 11A regarding the assessable value of processed fabrics. The Court held that the method of valuation adopted by the respondent No. 1, based on the cost of grey fabrics plus processing charges, was valid as per the precedent set in M/s Ujagar Prints III. The Court ruled that the demand for differential duty raised by the appellant was not justified, thereby allowing the appeal of the respondents and setting aside the duty demand.