NIRLON LTD. vs COMMNR. OF CENTRAL EXCISE, MUMBAI

The Supreme Court ruled that the valuation of Tyre Cord Yarn (TCY) for captive consumption must be determined under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, rather than under Rule 6(b)(i), as the goods removed for captive consumption were found to be different from those sold at the factory gate. The Court upheld the findings of the Commissioner and CESTAT, confirming the demand for differential duty and penalties imposed on the appellant. The appeal by Nirlon Ltd. was dismissed, affirming the lower authorities' decisions regarding the incorrect price declaration under Section 4(1) of the Central Excise Act, 1944.