M/S. Escorts Ltd vs Commnr. Of Central Excise, Faridabad

The Supreme Court addressed the issue of excise duty applicability on Transmission Assemblies, an intermediate product in tractor manufacturing, for the period from January 1996 to May 1998. The Court held that Transmission Assemblies are excisable goods under the Central Excise Act, as they are known in the market and have independent existence, thus affirming the Commissioner’s order. The Court emphasized that the admissions made by the appellant regarding the marketability of Transmission Assemblies were sufficient to establish their status as goods liable for excise duty.