Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Excisability of plants and machinery 1944 Central Excise Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Central Excise Act, 1944; Ss. 2(b) and 11AC; Circular No. 58/1/2002 - CX dated January 15, 2002 issued thereunder by the Central Board of Excise and Customs/Central Excise Tariff Act, 1985; sub-heading 8543.90:Excisability of plants and machinery-Assessee assembling 'Solar Electric Power Fencing System' - Issuance of show-cause Notice by Revenue demanding certain amount of excise duty - Demand of duty confirmed by the Authorities - Assessee filing appeal before Tribunal - Tribunal held that the item in question is goods satisfying tariff description under sub-heading 8543.90 and thus liable for excise duty - On appeal, Held: On the issue of excisability of goods assembled at site, a Circular clarifying on the question of excisability of such goods in terms of various decisions of the Supreme Court on the subject of excisability has already been issued by the Central Board of Excise and Customs - Since factual aspects not considered by the Tribunal, it would be proper to remit the matter to it for consideration afresh in terms of the Circular and in the light of judgments of Supreme Court in CCE, Indore v. Vidhi Brothers and CCE, Indore v. Cethar Vessels - Directions issued.The Commissioner, Revenue, while examining the excisability of the Solar Electric Power Fencing System in terms of Section 2(b) of the Act held that assembling of the said item at the site by the assessee will bring into existence a new product distinct from all its parts/product used in it, thus liable for excise duty. Accordingly, a show-cause Notice was issued to the assessee. The assessee contended that the goods in question are not classifiable under the tariff sub-heading 8543.90 of the Customs Excise Tariff Act as electrical machines and apparatus, and thus, not liable for duty. The authorities invoked larger period in terms of Section 11A of the Central Excise Act, 1944 and confirmed the duty demanded and also imposed like sum as penalty under Section 11AC of the Act. A sum of rupees five lakhs was also levied as penalty on the Managing Director of the Company. Aggrieved, the assessee filed an appeal, which was allowed by the Tribunal holding that goods in question are liable to Excise duty and remanding the matter to Revenue for recounting the duty in terms of the directions, and the penalty against the Managing Director reduced to Rs.50,000/-. Hence the present appeals. Appellant-assessee contended that the view taken by the CESTAT is untenable as the adjudicating authority was not justified in holding that fabrication of the plants in question out of duty paid bought out items amounts to manufacture of a new marketable commodity and therefore dutiable. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2007 INSC 843 |
Petitioner | M/s. Ibex Gallagher Pvt. Ltd. And Anr. |
Respondent | Commissioner Of Central Excise, Bangalore |
SCR | [2007] 9 S.C.R. 70 |
Judgement Date | 2007-08-17 |
Case Number | 6790-6791 |
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