M/S. Essel Propack Ltd vs Commnr. Of Central Excise, Mumbai

The Supreme Court upheld the Tribunal's decision confirming the demand of excise duty under Section 11-AB of the Central Excise Act, 1944, stating that the value of plastic caps fitted to tubes must be included in the assessable value when both are manufactured in the same factory. The Court distinguished the case from Union of India v. J.G. Glass Industries Ltd., emphasizing that the caps, when fitted before removal, constitute part of the manufactured product. The appeal was dismissed, affirming the Tribunal's modified penalty and interest.