Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Excise Laws - Central Excise and Salt Act 1944 - s.4 - Valuation of excisable goods |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Excise Laws - Central Excise and Salt Act, 1944 - s.4- Valuation of excisable goods - Place of removal of goodsfor purpose of s. 4 of the Act - Period involved being28.09.1996 to 31.03.2003 - Whether, by virtue of a transitinsurance policy in the name of the manufacturer, excise dutyis liable to be recovered on freight charges incurred fortransportation of goods from the factory gate to the buyer'spremises, treating the buyer's premises as the place ofremoval - Held: s.4 as substituted by the 1973 AmendmentAct suffered a further amendment in 1996 - Theamendments carried out were to have effect from 28. 9. 1996,which is also the starting point on facts in the present case -With effect from the Amendment Act of 28.9. 1996, the placeof removal only has reference to places from which themanufacturer is to sell goods manufactured by him, and can,in no circumstances, have reference to the place .of deliverywhich may, on facts, be th~ buyer's premises - By anAmendment Act which came into effect on 1. 7. 2000, s. 4 wassubstituted yet again -'- For the second period in question inthe present case, namely, 1.7. 2000 to 31.3. 2003, the depot,premises of a consignment agent or any other place fromwhich excisable goods are to be sold after their clearancefrom the factory are no longer places of removal -Also, thedefinition of "transaction value" makes it clear that freight ortransportation expenses are not included in calculating theexcise duty payable- By an Amendment Act with effect from14. 5. 2003, s. 4 was again amended- On and after 14. 5. 2003,the position as it obtained from 28.9.1996 to 1. 7.2000 hasnow been reinstated - r.5 of the Central Excise Rules assubstituted in 2003 also confirms the position that the cost oftransportation from the place of removal to the place ofdelivery is to be excluded, save and except in a case where the factory is not the place of removal - Thus, in law, it isclear that for the period from 28. 9. 1996 up to 1. 7. 2000, theplace of removal has reference only to places from whichgoods are to be sold by the manufacturer, and has noreference to the place of delivery which may be either thebuyer's premises or such other premises as the buyer maydirect the manufacturer to send his goods - Revenue'sargument that freight charges must be included as the salein the present facts took place at the buyer's premises isincorrect- Further, for the period 1. 7. 2000 to 31. 3. 2003 therewill be no extended place of removal, the factory premisesor the warehouse (in the circumstances mentioned in theSection), alone being places of removal - Under nocircumstances can the buyer's premises, therefore, be theplace of removal for the purpose of s.4 on the facts of the present case - Central Excise Value.,ion (Determination ofPrice of Excisable Goods) Rules, 2000 - rr. 5 and |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2015 INSC 742 |
Petitioner | Commissioner Of Customs And Central Excise, Nagpur |
Respondent | M/s. Ispat Industries Ltd. |
SCR | [2015] 15 S.C.R. 259 |
Judgement Date | 2015-10-07 |
Case Number | 637 |
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