Commr.Of Central Excise,Nagpur vs M/S Universal Ferro & Allied ...

The Supreme Court addressed the appeals concerning the Central Excise duty on Silicon Manganese produced by Universal Ferro & Allied Chemicals Ltd. (UFAC), an Export Oriented Unit (EOU). The Court held that the job work undertaken by UFAC for Tata Iron & Steel Company Ltd. (TISCO) was permissible under the EXIM Policy of 1997-2002, and thus, the duty charged on the value including TISCO's raw materials was not justified. The Court upheld the CESTAT's decision to allow UFAC's appeals and dismiss the Revenue's appeal, reinforcing the legal principle that EOUs can engage in job work under specified conditions without incurring additional duties.