M/S. ESCORTS LTD. vs COMMNR. OF CENTRAL EXCISE, FARIDABAD

The Supreme Court addressed the issue of excise duty applicability on Transmission Assemblies produced during tractor manufacturing, specifically under the context of exemption notification 162/1986. The Court held that Transmission Assemblies are indeed excisable goods as they are known to the market, establishing that marketability is a key criterion for excise duty under the Central Excise Act, 1944. The Court upheld the Commissioner’s decision that the appellant is liable to pay excise duty for the period from January 1996 to May 1998.