COMMNR. OF CENTRAL EXCISE, MADURAI vs M/S. AYYAPPAN TEXTILES LTD. — C.A. No. 6766/2003

Summary of C.A. No. 006766/2003 The Supreme Court dismissed the Central Excise Commissioner's appeal, upholding the Appellate Commissioner's decision to restrict the excise duty demand against Ayyappan Textiles Ltd. to Rs. 1,33,573 (instead of Rs. 4,98,034). The Court found that test reports from weekly samples could not definitively establish that higher-count yarn was produced throughout the entire period without direct sampling evidence, and that the respondent's defense—that weekly test reports don't represent daily production variations—had considerable merit. Given the minimal amount involved and excessive litigation history, the Court declined to interfere. This case analysis is maintained by casestatus.in based on publicly available court records.