COMMISSIONER OF CENTRAL EXCISE vs M/S NESTLE INDIA LTD.

The Supreme Court ruled that the valuation of excisable goods under Rule 8 of the Central Excise Valuation Rules, 2000 applies to captive consumption, and thus, the assessable value should be based on the cost of production rather than the export price. The Court held that the exemption notifications (Notification No.8/97-CE and Notification No.23/2003-CE) were applicable, confirming that the duty should be calculated accordingly. The judgment of the CESTAT was upheld, setting aside the orders of the lower authorities which incorrectly determined the valuation basis.