COMMNR. OF CENTRAL EXCISE, MEERUT vs M/S. MONSANTO MFG. (P) LTD.

The Supreme Court addressed the issue of differential duty under Rule 9(A) of the Central Excise Rules, 1944 and Section 11A of the Central Excise Act, 1944, concerning M/s. Monsanto's pricing under a sourcing agreement with BBLIL. The Court held that the Commissioner erred in concluding that there was suppression of material facts, as M/s. Monsanto had provided the sourcing agreement to the Department. The Court ruled in favor of M/s. Monsanto, emphasizing that the transaction was on a principal-to-principal basis and that the show cause notice was barred by limitation.