Commissioner Of Central Excise, Jaipur vs M/S. Scan Synthetics Ltd

The Supreme Court, in Civil Appeal No. 4246 of 2002, addressed the issue of assessable value under Section 4(1)(a) of the Central Excise Act, 1944, concerning the valuation of grey textured yarn captively consumed in the manufacture of dyed yarn. The Court upheld the Tribunal's decision that the price charged to independent purchasers at the factory gate should be considered the normal price for determining the assessable value, rejecting the Revenue's claim of undervaluation based on inflated dyeing costs. The appeal by the Revenue was dismissed, affirming the Tribunal's ruling.