COMMNR. OF CENTRAL EXCISE, ALLAHABAD vs M/S. SOMAIYA ORGANICS (INDIA) LTD.

The Supreme Court addressed the appeal against the CEGAT's decision regarding the differential duty demand of Rs. 14,89,61,104.00 on Ethyl Alcohol-Denatured (SDS) transferred between manufacturing units. The Court held that the assessable value should be determined under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, rather than Rule 6(b)(i), affirming the assessee's method of valuation. The judgment clarified the application of excise duty on SDS for industrial consumption and upheld the CEGAT's ruling in favor of the assessee, thereby dismissing the appeal of the Commissioner of Central Excise.