Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | I 944 Central Excise Act |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Act, I 944:S. I I-A, proviso-Recovery of duty not levied due to suppression of factregarding related person-Assessee, manufacturing patent and proprietarymedicines-Show cause notices issued to assessee demanding duty on the basisof price at which its distributor sold goods in whole sale trade on the ground thatsaid distributor was a related person and the assessee suppressed the fact-Held,the issue that distributor was a related person has been the subject matter ofconsideration of excise authorities at different stages and necessary material wasbefore the authorities-They had then taken the view that distributor was not arelated person-If the authorities came to the conclusion subsequently that it wasa related person, the same fact could not be treated as a suppression of fact onthe part of assessee so as to saddle it with liability of duty for the larger periodby invoking proviso to s. I I-A-As regards the assessee, it has all along beencontending that they were not related persons, so, it cannot be said to be guiltyof not filing up the declaration indicating. related persons-The demand forextended period by invoking proviso to s. I I-A cannot be upheldS. I I-A, proviso-Exemption Notification No.17 5186-CE dated I. 3. I 986-Para 7-Recovery of duty not levied due to suppression of fact that logo usedby assessee was also being used by another manufacturer-Assessee, a smallscale unit manufacturing patent and proprietary medicines-Using logo "PlB" assigned to it by "P & B Laboratories Ltd. "-Show cause notice issuedto assessee stating that assessee suppressed the fact that the logo used by itwas also being used by another manufacturer, which was ineligible forexemption under Notification No. J 75186-CE-Held, use of logo of theG manufacturer by other person whether an assignor or a third party, has norelevance for purposes of para 7 of exemption Notification No. l 75186-C~The ground that assessee has suppressed the fact that M/s. P & B Laboratorieswere also using the logo for availing the benefit under the Notification cannotbe a valid reason to invoke the proviso to s. I I-A-There is no obligation on.H the owner of a logo to make a roving 252 inquiry to ascertain whether any otherperson is also using his logo and disclose it to the authorities to avert a Apossible allegation of suppression of fact for purposes of invoking the proviso--Proviso to s. ll-A is not available to Revenue. |
Judge | N/A |
Neutral Citation | 2003 INSC 111 |
Petitioner | M/s. P & B Pharmaceuticals (p) Ltd. |
Respondent | Collector Of Central Excise |
SCR | [2003] 2 S.C.R. 252 |
Judgement Date | 2003-02-19 |
Case Number | 3969 |
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