Commissioner Of Central Excise vs M/S Nestle India Ltd

The Supreme Court held that the valuation of excisable goods under Section 3(1) Proviso (ii) of the Central Excise Act, 1944 must consider the FOB value of similar goods exported, rather than the cost of production under Rule 8 of the Central Excise Valuation Rules, 2000. The Court found that the exemption notifications applied to the case, and thus the duty payable should be determined accordingly. The judgment of the CESTAT was upheld, reversing the decisions of the original and appellate authorities.