- 2020 (3) TMI 375
100% EOU - allegation that they were doing job work in violation of Exim policy - quantum of sale made to DTA unit - debonding - conversion of raw material supplied by M/s Tata Iron & Steel Company Ltd. - transfer of Manganese Ore by TISCO to UFAC for the purposes of processing the same and converting it into Silicon Manganese - sale and purchase - case of Revenue is that since in the transaction between UFAC and TISCO there is no transfer of property in goods, the same cannot be termed as ‘sale’ and therefore would not be covered under paragraph 9.9 (b) of the EXIM Policy - HELD THAT:- The perusal of the definition makes it clear that when there is a transfer of possession of goods in the ordinary course of trade or business either for cash or for deferred payment or any other valuable consideration, the same would be cov....... + More
- 2019 (12) TMI 552
Validity of Rule 5 of CER - Whether an assessee who chooses once to pay duty in terms of Rule 96-ZP(3) can be compelled to pay duty calculated in accordance with the said Rule for all times to come without any regard to the actual production is a question which requires examination? HELD THAT:- The question posed before us did not arise at all on facts and the question which has been referred is not something which the assessee disputes. The matter is sent back to a Division Bench to decide the questions stated in para 20 of Bhuwalka Steel Industries Limited and Another [2017 (3) TMI 1357 - SUPREME COURT].
- 2019 (12) TMI 474
Valuation - captive consumption - provisional assessment - Order was not passed stated that it was a provisional assessment order - applicability of Section 11A of the Central Excise Act, 1944 - time limitation - Could the respondent authorities have ignored the binding directions of the Hon’ble High Court of Delhi to hold that no Show Cause Notice (SCN) was required in the present case as the assessments in question were provisional? HELD THAT:- The fact remains that the appellant voluntarily furnished requisite bonds in Form B-13 referable to Rule 9B supported by bank guarantee for equivalent amount of the differential duty. It is not an undertaking filed pursuant to the order of the Court. Concededly, the order disposing of the writ petitions does not absolve the appellant from the said bonds; nor the endorsements made thereon an....... + More
- 2019 (12) TMI 430
CENVAT Credit - input - fuel - Restriction / Reversal of credit under rule 6 - Scope and interpretation of rule 6(1) and rule 6(2) - Low Sulphur Heavy Stock - case of assessee is that they are entitled to claim CENVAT credit on the input, that is, LSHS even though fertilizer is exempt from excise duty - HELD THAT:- When Rule 6(1) says that the CENVAT Credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, it relies upon the definition of “inputs” contained in these Rules which certainly include LSHS and steam and electricity that are produced in the manufacturing process utilizing LSHS. The exception that is contained in sub-rule (2) refers to all inputs except inputs intended to be used as fuel which then results in the manufacture of final products which are both chargeable ....... + More
- 2019 (12) TMI 286
Area based exemption - Recovery of refund of Refund of NCCD on the ground that exemption was not permissible under the notification for the units located in the State of Sikkim - Binding nature of Circular issued by the CBEC (CBIC) - appellant submitted that NCCD, education cess, and secondary and higher education cess form part of the excise duty - manufacture of Indian Mouth Freshener - Levy of education cess, higher education cess, and National Calamity Contingent Duty (NCCD) - Notification dated 17.2.2003 - N/N. 71/2003 dated 9.9.2003 HELD THAT:- It is not in dispute that when initial exemption notification was issued in 1997 for the North-Eastern States, which was later on applied to the State of Sikkim on 9.9.2003. The benefits from payment of excise duty and additional excise duty were confined to the basic excise duty payable unde....... + More
- 2019 (11) TMI 1372
Maintainability of appeal - CENVAT credit - input services - place of removal - principles of natural justice - HELD THAT:- The High Court ought to have analyzed the relevant facts and contentions raised in the subject appeal(s) on its own merit and ought not to have disposed of the same by a general observation, as is noticed from the analysis in the impugned judgment. The impugned judgment set aside - the appeal(s) are restored to the file of the High Court to its original number, for being considered afresh in accordance with law.
- 2019 (11) TMI 834
Conviction of offences - offence punishable under Section 9(1)(ii) of the Central Excise and Salt Act, 1944 - HELD THAT:- The ends of justice would be met if the sentence imposed upon the appellant of two months with fine of ₹ 1 lakh is substituted by sentence of fine for ₹ 3.5 lakhs. The amount of Rs. One lakh as ordered by the High Court has already been paid - The amount of ₹ 2.5 lakhs so deposited in the Registry shall now be appropriated towards fine and shall be made over to the Department - appeal disposed off.
- 2019 (11) TMI 673
Scope of SCN - Manufacturing activity taking place or not - Respondent manufactured Foots Oil, Pressed Wax, Pressed Paraffin Wax without observing the mandatory procedure and clearing Excise Duty - demand of Central Excise duty under the extended proviso to Section 11A of the said Act - interest under Section 11 AB of the said Act - recovery of duty - scope of SCN. HELD THAT:- Section 11A deals with various facets including non-levy and non-payment of excise duty and contemplates issuance of a show cause notice by the Central Excise Officer requiring the “person chargeable with duty” to show cause why “he should not pay the amount specified in the notice.” In terms of sub-section 10 of said Section 11A, the concerned person has to be afforded opportunity of being heard and after considering his representation, if a....... + More
- 2019 (9) TMI 791
Doctrine of Promissory Estoppel - withdrawal of exemption N/N. 71 of 2003 dated 09.09.2003 - Exemption from duty of excise or additional duty of excise, as the case may be, leviable thereon under any of the said Acts as was equivalent to the amount of duty paid by the manufacturer of the said goods, other than the amount of duty paid by utilisation of CENVAT credit under the CENVAT Credit Rules, 2002 - whether, by invoking the doctrine of promissory estoppel, can the Union of India be estopped from withdrawing the exemption from payment of Excise Duty in respect of certain products, which exemption is granted by an earlier notification; when the Union of India finds that such a withdrawal is necessary in the public interest? HELD THAT:- This Court in a catena of decisions has considered the issue with regard to inapplicability of the doct....... + More
- 2019 (8) TMI 1297
Recall of order - Valuation - correctness of ex-factory price - Rule 9(2) of the Central Excise Rules 1944 - HELD THAT:- The basis on which the CESTAT has taken a decision, namely, the earlier order of the CESTAT dated 3 December 2009 is flawed since the order relied on has been recalled. The proceedings are remanded back to the CESTAT in view of the inadvertent error which has cropped up in the impugned judgment and order - appeal allowed by way of remand.
- 2019 (6) TMI 954
Penalty u/s 11AC of CEA - period from 1-4-1994 to 16-1-1997 - whether the penalty could also be imposed under the aforesaid provision for the period prior to 28-9-1996 inasmuch as Section 11AC of the Act under which the penalty proceedings were initiated, was brought on the statute book by amendment only w.e.f. 28-9-1996? - HELD THAT:- It is held by the High Court itself in the impugned judgment that Section 11AC is prospective in nature. In spite of that the High Court has upheld the penalty imposed by the appellant for the entire period including the period prior to 28-9-1996 - We are of the opinion that here the High Court clearly fell into error. Undoubtedly, Section 11AC is a penal provision. Once it is held to be prospective in nature, it becomes effective only from the date it was brought into force i.e. 28-9-1996. Therefore, no pe....... + More
- 2019 (6) TMI 953
Classification of goods - trims for refrigerators - whether classifiable under CTH 39 as plastic articles or under heading 8418 as parts of refrigerators? - HELD THAT:- There is no merit in the appeal - appeal dismissed.
- 2019 (6) TMI 762
Liability of National Calamity Contingent Duty (NCCD) - benefit of exemption notification - HELD THAT: -The issue is decided in the case of BAJAJ AUTO LIMITED VERSUS UNION OF INDIA & OTHERS [2019 (3) TMI 1427 - SUPREME COURT] where it was held that the NCCD is in the nature of excise duty and is, thus, entitled to the benefit of the exemption notification - appeal allowed - decided in favor of appellant.
- 2019 (5) TMI 657
Interest on differential duty - price escalation clause - Whether interest is payable on the differential excise duty with retrospective effect that become payable on the basis of escalation clause under Section 11AB of the Central Excise Act, 1944? - Whether the decision in SKF case [2009 (7) TMI 6 - SUPREME COURT] and also in International Auto [2010 (1) TMI 151 - SUPREME COURT] lay down the correct law having regard to the decision of this Court in MRF case [1997 (3) TMI 104 - SUPREME COURT] which was in fact rendered by a Bench of three Judges. HELD THAT:- The scheme of the Central Excise Act and the Rules are a separate code. Section 11A is a provision for recovery. If there is a non-levy, non-payment, short-levy or short-payment, the same becomes recoverable under Section 11A. If there is any of the four contingencies referred to in....... + More
- 2019 (4) TMI 934
Principles of natural justice - applicablity of judgement COMMISSIONER OF CENTRAL EXCISE SERVICE TAX VERSUS ULTRA TECH CEMENT LTD. [2018 (2) TMI 117 - SUPREME COURT OF INDIA] - CENVAT Credit - outward transportation - place of removal - HELD THAT:- It is submitted that the reported judgment has no application to the present case, but the High Court has not dealt with this contention in the proper perspective. Issue notice, returnable within four weeks.
- 2019 (4) TMI 587
Valuation - inclusion of Dharmada Charges (Charitable donation received from the customers) in the assessable value - Held that:- The receipts on account of Dharmada were voluntary, earmarked for charity and in fact credited as such. Though the payment as Dharmada has been found to be voluntary, it would make no difference to the true character and nature of the receipts even if there were found to be paid compulsorily because the purchaser, purchased the goods out of their own volition. The purchase of the goods is the occasion and not consideration for the Dharmada paid by the customer. When an amount is paid as Dharmada along with the sale price of goods, such payment is not made in consideration of the transfer of goods. Such payment is meant for charity and is received and held in trust by the seller. If such amounts are meant to be ....... + More
- 2019 (4) TMI 586
Valuation - inclusion of Dharmada charges (charitable donation from customers) in the assessable value - According to the Respondent, the Dharmada was meant for charity and was accordingly credited to charity - Held that:- The amount of Dharmada cannot be included in the transaction value for the purposes of assessments - The present case has been tagged with the case of M/s D.J. Malpani vs. Commissioner of Central Excise, Nashik [2015 (7) TMI 1118 - SUPREME COURT] - appeal dismissed.
- 2019 (4) TMI 477
Valuation - Validity of SCN - SCN challenged on the solitary ground that the same was vague having failed to specifically mention that the respondent valued their goods, transferred to other units, at a value lesser than the value as per CAS-4 Standards - Held that:- The Appellate Tribunal has misread the subject show cause notice. Hence, the conclusion reached on such erroneous basis cannot be sustained. The matter will now proceed before the Tribunal for consideration afresh on its own merits in accordance with law. Needless to observe that all consequential steps taken on the basis of the stated show cause notice will be subject to the final view taken by the Tribunal in the remanded proceedings - appeal allowed.
- 2019 (3) TMI 1427
Area based exemption - Liability towards National Calamity Contingent Duty (NCCD), Education Cess and Secondary & Higher Education Cess - manufacturing establishment which is exempted from payment of Central Excise Duty - appellant was apparently paying an automobile cess, but the NCCD, Education Cess and Secondary & Higher Education Cess were not being paid - Section 136 of the Finance Act, 2001. Held that:- Sections 91 & 93 of the Finance Act, 2004 introduced the Education Cess as a duty of excise calculated on the aggregate of all duties of excise. Sections 136 & 138 of the Finance Act of 2007 similarly imposed Secondary & Higher Education Cess, on the same pattern as the Education Cess - It is relevant to note that in terms of the show cause notice, the cesses were being so demanded on account of the fact that they....... + More
- 2019 (3) TMI 101
Job work - Computation of Aggregate turnover of the goods - Rectification of mistake - Section 35L of the Central Excise Act, 1944 - clearance of cotton fabrics and cotton made-ups without payment of any duty - case of appellant is that the job workers were the manufacturers and that no liability could be fixed on the traders - Circular dated 30.10.2003 - threshold limit of clearances for each job-worker - whether the Appellants’ liability is only in respect of the clearance of that job worker whose clearance was greater than the limit of ₹ 25 lakhs or in respect of the entire aggregate value of clearances? Held that:- The Exemption Notification dated 30.04.2003 exempts “first clearances for home consumption, upto an aggregate value not exceeding twenty lakh rupees”. The emphasis is on the aggregate value and what ....... + More