In Brief
The Supreme Court upheld CESTAT's decision that the Commissioner of Central Excise erred in valuing Specially Denatured Spirits (SDS) manufactured by the assessee at the highest market rate. The Court held that when determining the value of goods cleared for captive consumption under excise law, the most conservative comparable price must be adopted, not the highest price. Relying on A.K. Roy v. Voltas Limited, the Court reaffirmed that the price must be conservative and represent genuine wholesale value free from artificial augmentation. The Commissioner's selection of the highest-rate transaction was incorrect and failed to reflect the true 'normal price' contemplated by excise rules.
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