TMI Blog2024 (4) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1962 if the same is charged at ad valorem rate, then the value of the goods has necessarily to be arrived at in accordance with the provisions of Section 14 of Customs Act, 1962. The said provision of the Act has been made very clear by Hon ble Supreme Court in the case of COMMNR. OF CENTRAL EXCISE VERSUS MORARJEE BREMBANA LTD. [ 2015 (4) TMI 354 - SUPREME COURT] where it was held that As is clear from the bare reading of the aforesaid proviso, in those cases where excisable goods are produced or manufactured by hundred per cent export oriented undertaking are allowed to be sold in India, the duty of excise has to be the amount equal to the aggregate of the duties of customs which would be leviable under Section 12 of the Customs Act, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods manufactured by them. However, policy allowed them to clear certain percentage of goods into domestic tariff area on payment of central excise duty chargeable under first proviso to sub-section (1) of Section 3 of Central Excise Act, 1944, provided the appellant acquired permission from competent authority for such domestic clearance. During the period from January 2013 to December 2013, appellant cleared the goods manufactured by them into domestic tariff area and took into consideration the value for the purpose of assessment equal to the FOB (Free on Board) value of like goods exported. It appeared to Revenue that the goods manufactured by the appellant were covered under notification issued under Section 4A of Central Excise Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1975. He has further submitted that basic customs duty is charged under Customs Act, 1962 and duty which is commonly called CVD is charged under Customs Tariff Act, 1975. He has further submitted that there is no dispute on CVD paid by the appellant. The dispute is in respect of component of basic customs duty and as per the provisions of the Act, basic customs duty is calculated on the basis of the value arrived at as provided under Section 14 of Customs Act, 1962. He has further submitted that Section 14 of Customs Act, 1962 does not provide for determination of value as provided by Section 4A of Central Excise Act, 1944 and, therefore, the impugned order is bad in law and not sustainable. 2.1 Learned counsel for the appellant has reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actured,- (i) xxx (ii) by a 100% export-oriented undertaking and brought to any other place in India, shall be an amount equal to the aggregate of the duties of customs which would be leviable under the Customs Act, 1962 or any other law for the time being in force, on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value; the value of such excisable goods shall, notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975 (51 of 1975). Explanation 1: Where in respect of any such like goods, any duty of customs leviable for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondent to DTA should be treated as transaction sale and therefore Rule 4 would be applicable. However, this argument has to be rejected in view of proviso to Section 3 of the Central Excise Act, 1944 which reads as under : Section 3. Duties specified in the [Schedule to the Central Excise Tariff Act, 1985] to be levied.-(1) There shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods other than salt which are produced or manufactured in India and a duty on salt manufactured in, or imported by land into, any part of India as, and at the rates, set forth in the Schedule to the Central Excise Tariff Act, 1985 : Provided that the duties of excise which shall be levied and collected on any exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e into consideration where the value is determined in accordance with the provisions of Section 14 of Customs Act, 1962. On perusal of the show cause notice, we noted that for the purpose of demanding differential duty, basic customs duty was calculated by Revenue on the basis of MRP value minus abatement. We note that under Section 14 of Customs Act, 1962, there is no provision for arriving at value on the basis of the provisions of Section 4A of Central Excise Act, 1944 such as MRP minus abatement as adopted by Revenue. We also do not accept the contention of learned AR who has submitted that the transaction value was indeed the invoice value for determination of basic customs duty for the reason that invoice value was not taken into cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
