COMMNR. OF CENTRAL EXCISE, PUNE vs M/S. CADBURY INDIA LTD.

The Supreme Court addressed the valuation of goods captively consumed by M/s. Cadbury India Limited under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975. The Court held that the valuation should be based solely on the cost of production and profits, excluding additional expenses such as labor and administrative costs. The Tribunal's decision to set aside the orders of the Commissioner and Assistant Commissioner was upheld, affirming that the valuation of non-marketable intermediate goods must adhere strictly to the provisions of Rule 6(b)(ii).