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Case Laws
Showing 161 to 180 of 465 Records
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1997 (2) TMI 315
Duty Drawback - Confiscation and penalty ... ... ... ... ..... ave been rightly held not to correspond in any material particulars with the entry made under Section 15 of the Customs Act, 1962 as the goods have been declared in the shipping bills to be readymade garments of cotton, polyester and rayon and they have not been declared as second hand or used garments. Hence Section 113(i) has been rightly invoked. We therefore, uphold the order of confiscation with option to redeem. However, having regard to the totality of facts and circumstances of this case, and in particular to the fact that the goods have been lying with the Customs authorities since December, 1995 and are stated not to have been redeemed, the penalty on M/s. Gee Gee International is reduced to Rs. 2.5 lakhs and the penalty on M/s. Ford International is reduced to Rs. 1.25 lakhs under Section 114(iii) of the Customs Act, 1962. 9. emsp In the result, subject to the above modification in the quantum of penalties, the impugned order is upheld and the appeals are rejected.
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1997 (2) TMI 314
Chemicals and Fertilizers - Melamine ... ... ... ... ..... duction of such a fertilizer which would be eligible for the benefit of the notification. The appellants have not produced any material which would pursuade us to take any other view. We see, therefore, no reason to differ from the same. 14. emsp However, insofar as benefit of Notification No. 217/86 is concerned, the issue is covered by the Tribunal rsquo s order 1996 (83) E.L.T. 159 (Tribunal) No. 58-59/96-C dated 29-1-1996 cited by the learned Counsel and the same would be available subject to fulfilment of its conditions in terms of the aforesaid order of the Tribunal. But, since the authorities below have not dealt with this aspect, they are required to consider the same as already held by the Tribunal in their own case in order No. 1670/96-WRB dated 22-5-1996. The matter is, therefore, remanded to the Assistant Collector for examining this prayer of the appellants in the light of the aforesaid orders of the Tribunal and the law. The appeal is allowed in the above terms.
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1997 (2) TMI 313
Playing Cards ... ... ... ... ..... d come up for consideration in the case of M/s. Esbee Playing Card Co. and the Tribunal as per Order No. 763/96, dated 11-12-1996 1997 (90) E.L.T. 357 (Tribunal) had held that the term sports goods rsquo used in the manufacture is of wide purport and thus cover playing cards. Following the ratio of the said decision, we accept the plea of the appellants and accordingly, the appeal is allowed with consequential relief.
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1997 (2) TMI 312
... ...
... ... ..... t stated that at the earlier stage it was impossible to make a detailed assessment of cost. Appellant also admitted that during the period covered by the notice, motorcycles were sold at a lower value as they were at an experimental stage. There was also circumstance that employees to whom motorcycles were being sold were required to report back on the performance. In the light of these circumstances, the lower authorities were correct in holding that Rs. 3510 per unit cannot be regarded as normal price, that is, the price at which such goods are ordinarily sold by the assessee to buyer in the course of wholesale trade. In reply to the show cause notice the appellant did not give the cost data for the period in question. Therefore it is legitimate to have adopted the value of Rs. 4820 shown in the price list effective from 9-2-1982 for determining the value of the motorcycles cleared during the earlier period. We find no ground to interfere and accordingly dismiss the appeal.
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1997 (2) TMI 311
... ...
... ... ..... he price structure has to be established. See Lakshmi Machine Work Ltd. v. Union of India, 1992 (57) E.L.T. 211 (Mad. HC) . Far from there being any such nexus, there was no depression of price inasmuch as the prices by the appellant to EMPL are same as the prices charged by the appellant to other dealers. The Collector was, therefore, in error in including in the assessable value notional interest on the amount of deposit. 6. emsp Since quantification has to be done afresh in the light of the above findings, the question of penalty also may be considered afresh. 7. emsp The impugned order is set aside and the case is remanded to the jurisdictional adjudicating authority for redeterming the assessable value by including in the assessable value the expenses incurred by EMPL towards free warranty service and for determination of the quantum of differential duty and for deciding afresh the question of imposition of penalty and the quantum thereof. Appeal is allowed as indicated.
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1997 (2) TMI 310
Demand - Limitation ... ... ... ... ..... be reduced to the extent of ethylene glycol content in the methanol as ineligible. The Supreme Court held that ethylene glycol was used in the manufacture of polyester fiber, though methanol had arisen as a part and parcel of the chemical reaction during the processes of manufacture. The ratio of this decision has relevance to the interpretation of the Notification No. 38/73 considering the fact that in the present case also Non-cellulosic waste arose as a necessary part of the manufacturing process of Nylon yarn using polymide chips. 5. emsp As regards limitation the Supreme Court decision in the case of H.M.M. Ltd. (Supra), squarely covers the appellant case. The Supreme Court has held that the non-declaration of waste/by-product in classification list cannot automatically lead to conclusion of suppression of fact with intent to evade payment of duty. There is thus, no reason to interfere with the impugned order passed by the Commissioner (Appeals). The appeal is rejected.
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1997 (2) TMI 309
Modvat - Intermediate product ... ... ... ... ..... the other factory. Credit of duty on the input has been allowed where Alkyd Resins has been used as intermediate product in their own factory for captive consumption. Denial of credit under Rule 57C for denying Modvat on outside clearances is therefore justified. 4. emsp We have carefully considered the submissions made. The appellants have contended that they have declared alkyd resins as intermediate product in their Modvat declaration. This may be so, but this would cover their taking credit of inputs on that quantity of Alkyd Resin used by them captively, not in respect of the clearances under nil duty gate passes in terms of exemption Notification No. 132/86. Rule 57C will come into play. The appellants argument that ultimately Alkyd Resins are used for the manufacture of Paints and Varnishes cleared on payment of duty from the other factories, cannot be accepted. In this view of the matter there is no reason to interfere with the impugned order. The appeal is rejected.
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1997 (2) TMI 308
Modvat on capital goods - Material handling equipment ... ... ... ... ..... ver, no dispute that the items in question contribute towards the functioning of the plant, perform functions integrally concerned with the plant and their presence would be essential for the functioning of the plant at critical times such as UPSS when normally power drops or fails. Therefore, these constitute the elements which are used along with other machines towards production of final products. The ratio of the decision in Modi Alkalies and Chemicals v. CCE - 1996 (88) E.L.T. 555 (Tribunal) 1997 (68) ECR 120 would apply with regard to items in question. In addition, the Tribunal in CCE, Meerut v. Nav Bharat Paper Mills - 1996 (86) E.L.T. 501 has held that control panels are capital goods. 4. emsp The representative of the appellant stated that he did not wish to challenge the Commissioner rsquo s finding with regard to pocket pyrometer, castor parts and master alloys. Commissioner rsquo s finding with regard to these are confirmed. 5. emsp Appeal thus partially allowed.
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1997 (2) TMI 307
... ...
... ... ..... he undertook the full responsibility for the details given in the shipping bills. Since the company is already penalised and when there are no materials to show that all the mis-declarations were done at his instructions and when Shri Gopilath himself who has carried out these manipulations has not implicated him, and in the facts and circumstances, there is no warrant to impose any personal penalty on Shah. Besides, penalty has already been imposed on the firm. Since Shri Shah who is the Managing Director of the above firm is not shown to have taken any direct act in the manipulations and in the absence of any such evidence in this regard, a mere statement by him that he takes full responsibility for the incorrect entries by itself is not sufficient to hold that he is liable for personal penalty in the absence of mala fides on his part in this regard. Therefore, we set aside the imposition of penalty of Rs. 5 lacs on him. The appeals are thus disposed of in the above terms.
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1997 (2) TMI 306
... ...
... ... ..... t the penalty to be imposed on the firm M/s. Joy Foam. In the impugned order, the penalty imposed is Rs. 1,20,000/- which is about 10 of the duty demanded in terms of the impugned order. In view of what we have held above the duty demand will come down to Rs. 3 to 4 Lakhs and in that view of the matter, we hold that the ends of justice will be met if the penalty is reduced to Rs. 30,000/-. We order accordingly. As far as the Director, Shri Cherian is concerned, it is seen that he is the main person concerned in the above evasion of duty and in the circumstances of the case we reduce the penalty to a sum of Rs. 15,000/- (Rupees Fifteen thousand only). In respect of Shri Verghese, Director, we reduce the same to a sum of Rs. 5,000/- (Rupees Five thousand only). 13. emsp As far as the plant and machinery is concerned, we reduce the redemption fine to Rs. 10,000/- (Rupees Ten thousand only). The appeals are accordingly allowed in the above terms with consequential reliefs if any.
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1997 (2) TMI 305
Classification ... ... ... ... ..... view of the above discussion we do not consider that the case law relied upon by the Learned Adv. is applicable to the facts of this case. 12. emsp The differential duty in respect of bolts, nuts and screws as per annexure to the show cause notice was Rs. 20,402.94 out of total demand of Rs. 64,552.75. The Collector, Central Excise Bangalore had imposed a penalty of Rs. 10,000/. Keeping in view the classification of bolts, nuts and screws already settled by the order of the Collector, Central Excise (Appeals) we reduce the, amount of penalty from Rs. 10,000/ to Rs. 5,000/ only (Rs. five thousand only). The duty demanded will be restricted only to the gears, shafts, pulleys, couplings and clutches. 13. emsp Taking all the relevant facts and circumstances of the case into account the amount of penalty is reduced from Rs. 10,000/ to Rs. 5,000/ (Rs. five thousand only) and the demand of excise duty is restricted to Rs. 44,149.81 only. The appeal is disposed of in the above terms.
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1997 (2) TMI 304
Jurisdiction ... ... ... ... ..... ioner of Customs is correct in law as in this case it is not disputed at all that the goods were cleared under a proper Bill of Entry filed at Calcutta Custom House which had been verified in the Custom House. Further action on the basis of the material recovered in search of the premises and other fresh evidence to proceed against the respondent ought to have been taken only by the Calcutta Custom House although the seizure of the goods for action under the Customs Act has taken place in the jurisdiction of the Bombay Custom House, but the adjudication has to be at the Custom House where the Bill of Entry for the assessment of duty on the goods had been filed and completed. In view of the settled legal position, we do not find any reason to interfere in the impugned order especially when we find that the Additional Commissioner of Customs has observed that any further probe into the matter could be under- taken by Calcutta Custom House. The appeal is disposed of accordingly.
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1997 (2) TMI 303
Modvat - Utilisation of credit for payment of duty on aerated water after withdrawal of facility
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1997 (2) TMI 302
Valuation - Undervaluation ... ... ... ... ..... the goods in the case of earlier imports the recorded price of which has been adopted. The appellants before the learned lower appellate authority had produced evidence by way of sales confirmation of two other importers for the import of the goods as US 25 per kg. The importation relied upon by the department was made seven months earlier to the importation in question. It is quite likely that there was change of price during that period. Therefore unless it could be shown that the invoice price for the goods was in anyway manipulated or there were some extra commerical considerations involved the invoice price in view of the evidence produced before the lower authority cannot be discarded. We observe that in the facts and circumstances of the case, the learned lower authority rsquo s reliance on the evidence of earlier imports produced could not be faulted. In the above view of the matter, we hold that there is no force in the plea of the revenue and we dismiss the appeal.
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1997 (2) TMI 301
Modvat on capital goods ... ... ... ... ..... rom stage of transform to the machinery and it becoming part and parcel of machinery, therefore, the disputed items have to be treated as lsquo capital goods rsquo alone. 23. emsp In the case of C.C.E. v. Nova Udyog Ltd., it has been held that electric wires and cables are included in the definition of the term lsquo capital goods rsquo . Although, there are detailed reasonings given in this judgment which has prompted the Revenue and DR to seek fresh consideration, we are of the view that there is no need to review the judgments and the same have rightly been decided. We are inclined to accept it and also the other judgments which has followed it (Kanoria Chemicals and Indl. Ltd., Jaypee Reva Cements, C.C. v. Nav Bharat Paper Mills, Century Cements Ltd. v. C.C.E., Modern Petro v. C.C.E. supra). 24. emsp Respectfully following these decisions, the claim of the appellants to treat items 1 to 8 are accepted and claim for 9 to 13 are rejected as not pressed. Ordered accordingly.
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1997 (2) TMI 300
Stay/Dispensation of pre-deposit - Valuation ... ... ... ... ..... ss used by them in both the situations was the same but where fixing of the same was requested by the customer such as M/s. Sita Juneya or Taj Mahal Hotel, the party provided necessary services for obtaining good contracts but instead of increasing any price they divided the assessable value as price of the goods and fixing charges. rdquo 5. emsp We have carefully considered the submissions made by both sides and perused the records. No substantial charge was alleged by the department that the part of the assessable value has been diverted and no substantial evidence has been placed on our record in support of the department rsquo s contention. Since the Addl. Collector has arrived at the conclusion on basis of presumption, it cannot be said that prima facie case is in favour of the department. On the other hand in principle, the fixation charges cannot be included in the assessable value as it is settled position. In the view we have taken, we allow the stay unconditionally.
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1997 (2) TMI 299
Classification ... ... ... ... ..... on shall be preferred to Heading providing a more general description. Applying this rule also classification under sub-heading 8504.90 C.T.A. will be proper under the Customs Tariff Act for Ferrite Cores as parts of transformers. Section Note 2(a) of Section XVI of the C.T.A. also lays down that parts which are goods included in any of the headings of Chapter 84 or 85 are in all cases classifiable in their respective heading. In the present case Ferrite Cores as parts of transformers are included in the sub-heading 8504.90 C.T.A. and hence, by applying this Section Note also, its classification under that sub-heading will be appropritate. The Central Excise Tariff Act sub-heading 8504.00 which was considered by the Tribunal in its decision cited (supra) does not have any specific sub-heading at all as in the case of Customs Tariff Act sub-heading 8504.90. In the result, we see no reason to interfere with the order passed by the Commissioner (Appeals). The appeal is rejected.
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1997 (2) TMI 298
Paper - Base clearances ... ... ... ... ..... ning wet-strength paper or contraries such as film or foil added in a converting operation must have special treatment such as that given to secondary fibre. 13. emsp Such scrap paper even if it fetches some value cannot be considered as excisable. Since such broke cannot be considered as excisable goods as described in the relevant notification therefore such quantity obviously cannot be included in computing the clearances. The notification refers to ldquo excisable goods rdquo specified in the Tables annexed to the notification and since scrap papers cannot be considered excisable goods the question of its inclusion or exclusion in computing base clearance would not arise. 14. emsp In view of this we hold that the quantity of waste paper which is captively consumed not as intermediate product for conversion into final product but only for being repulped cannot be included in the quantity of clearance for computing the base clearance. In view of this we allow these appeals.
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1997 (2) TMI 297
Modvat - Deemed credit ... ... ... ... ..... that duty has actually not been paid for any reason i.e. rate of duty is stated to be nil rate in the schedule to the Tariff Act, or the inputs are wholly exempt from duty or for any other reason (all the three Government orders). (ii) emsp The words ldquo charged to nil rate of duty rdquo must be understood not in the narrow sense of nil rate of duty being stated for the inputs in the schedule to Tariff Act, but in the general sense that actually no duty has been demanded or paid. The case of inputs wholly exempts from duty would also be attracted (Government order dated 7-4-1986 and 30-5-1988). (iii) emsp The words ldquo wholly exempt from duty rdquo would take in cases of unconditional exemption of whole of the duty payable and also conditional exemption of such duty where conditions are shown to have been satisfied. 8. emsp In the light of the above discussions, I find that the impugned order suffers from no infirmity. The appeal, therefore, has no merit and is dismissed.
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1997 (2) TMI 296
Modvat - Variation of credit ... ... ... ... ..... 15-4-1987. This conflict has since been resolved by the Larger Bench decision (supra). The Larger Bench, after considering the two streams decisions, concluded that adjustment, refund or recovery of credit on variation of duty paid is implicit in Rule 57G and the provisions of Rule 57E and the amendment made thereto are only clarificatory and procedural and the Larger Bench held that the amendment has retrospective effect. Such adjustment refund or recovery however can be made only on satisfaction regarding the variation of duty on inputs. Although, it was submitted before us by the ld. SDR that it is understood that a reference application against the conclusion of the Larger Bench has since been allowed, that however will not be a ground for us not to follow it until it is upset or revised by a Higher Forum. Therefore, following the ratio of the Larger Bench decision which is applicable to the facts of the present case, we set aside the impugned order and allow the appeal.
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