Commr.Of Cen.Exc.Faridabad vs M/S Food & Healthcaare Specialit.& Anr

The Supreme Court upheld the Tribunal's decision to quash the additional excise duty demand under Section 11A of the Central Excise Act, 1944, and penalties imposed under Rule 173Q of the Central Excise Rules, 1944, and Rule 25(1) of the Central Excise Rules, 2001. The Court found that the Assessee, M/s Food & Healthcare Specialities, was not the manufacturer but merely a job worker for Heinz India Pvt. Ltd., thus the duty was leviable only on the manufacturer. The Court affirmed the Tribunal's conclusion that the relationship between the Assessee and Heinz was not that of principal to principal, but rather principal and agent, leading to the dismissal of the revenue's appeal.