COMMNR. OF CENTRAL EXCISE, JAIPUR vs M/S.RAJASTHAN SPG.&WVG MILLS LTD,ETC.ETC

The Supreme Court upheld the tribunal's decision that Rajasthan Spinning and Weaving Mills Ltd. (RSWML) was the real manufacturer and correctly invoked the cost method under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975. The Court noted that the lease agreement with Bhilwara Spinners Limited was genuine, and even if the tribunal erred in its valuation analysis, it would not interfere with the findings. The Court emphasized that under Section 4(1)(a) of the Central Excise Act, the normal price is the basis for assessable value, affirming the tribunal's conclusion regarding the valuation method used by RSWML.