Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Tariff Act 1985 - Chapter Sub-Heading 3302.90 of First Schedule - Exemption of excise duty on perfumery compound |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Tariff Act, 1985 - Chapter Sub-Heading 3302.90 of First Schedule - Exemption of excise duty on perfumery compound - Odoriferous compound prepared by the respondent was applied to agarbathis to complete the process of manufacture of agarbathis - The Central Board of Excise and Customs issued a circular in 1999 which clarified that the odorferous substance, not capable of being bought and sold in the market in the normal course of trade, was not excisable - Before that, respondent was paying excise duty with respect to these odoriferous compounds and paid till March 2001 - Consequently, show cause notices issued to respondent to pay excise duty for period 2001-2002 to 2006-2007- Additional Commissioner of Central Excise passed orders holding that the Board~ยท circular was not applicable to the respondents and hence was liable to pay excise duty - Orders confirmed by the Appellate authority - However, CESTAT set aside the said orders - Held: Respondent manufactures perfumery compound in its Bangalore unit and then tram ports it to Mysore where it is finally applied to raw agarbathis to complete the manufacturing process of agarbathi - In this process of manufacturing, the perfumery compound is capable of being sold in the open market - Appellant fwd even sold some part of the compound to Mis. 'THC' - Evidently, clarification given by the circular is applicable to the product which comes into existence, at intermediate stage in the form of pastel dough in a continuous process of manufacture and not to the manufacture of odoriferous perfume, which is in liquid form and has got shelf life and capable of being stored/transported/sold - Circular cannot be equated with that of an exemption notification but is required to be read within the limited scope of its context in which it was issued - Circular clarifying certain doubts cannot giveeffect of an exemption notification - Therefore, it cannot be saidthat agarbathi compound manufactured by the respondent is coveredunder the aforesaid circular - Central Excise Act, 1944.Central Excise Tariff Act, 1985 - Chapter Sub-Heading3302. 90 o |
Judge | Hon'ble Mr. Justice S. Abdul Nazeer |
Neutral Citation | 2017 INSC 1036 |
Petitioner | Commissioner Of Central Excise & Service Tax, Bangalore |
Respondent | Mis Karnataka Soaps & Detergents Ltd. |
SCR | [2017] 10 S.C.R. 148 |
Judgement Date | 2017-10-12 |
Case Number | 4822-4825 |
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