Commissioner Of Central Excise, Jaipur vs Rajasthan Spg. And Wvg. Mills Ltd., Etc. ...

The Supreme Court upheld the tribunal's decision that Rajasthan Spinning and Weaving Mills Ltd. (RSWML) was the real manufacturer of processed fabrics, affirming the genuineness of the lease agreement with Purvi Fabrics & Textures. The Court clarified that the valuation of excisable goods should be determined under Section 4(1)(a) of the Central Excise Act, emphasizing that the normal price constitutes the basis of assessable value. The Court concluded that even if the comparable goods method was applied, RSWML's pricing practices were valid, thus supporting the tribunal's ruling on the cost method under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975.