COMMNR. OF CENTRAL EXCISE, JAIPUR vs M/S. SCAN SYNTHETICS LTD.

The Supreme Court, in Civil Appeal No. 4246 of 2002, addressed the valuation of grey textured yarn used captively in manufacturing dyed yarn under the Central Excise Act, 1944. The Court upheld the Tribunal's decision that the assessable value should be based on the normal price charged to independent purchasers at the factory gate, as per Section 4(1)(a) of the Act. The appeal by the Revenue was dismissed, affirming the Tribunal's reversal of the Commissioner's order regarding undervaluation and duty evasion.