Commissioner Of Central Excise, ... vs M/S. Gurdaspur Distillery

The Supreme Court held that Methane gas produced and used captively by the respondent is not liable to excise duty under the Central Excise Act, 1944, specifically under Section 11AC, as it was determined to be non-marketable. The Court emphasized that marketability is a crucial criterion for the imposition of excise duty, referencing the precedent in Bhor Industries Ltd. v. Collector of Central Excise. The appeal by the Revenue was dismissed due to their failure to provide evidence of marketability, affirming the lower authorities' findings.