Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1944-ss.37B Central Excises and Salt Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excises and Salt Act, 1944 - ss.37B and 11A - Different High Courts had been taking different views with regard to appropriate classification of HDPE bags under the Tariff Act - Circular issued by CBEC u/s. 37B for ensuring uniformity - Use of word "henceforth" in the circular - Held: Circular was expressly directed to have prospective application - Differential duty could not be recovered on basis of said circular for period prior to date of its publication - Central Excise Tariff Act, 1985 - Chapter Heading Nos. 39 and 63. Different High Courts had been taking different views as to whether excise duty in respect of HDPE bags was payable under Chapter Heading 63 or Chapter Heading 39 of the Central Excise Tariff Act, 1985. The Madhya Pradesh High Court in the Raj Pack Well Ltd. case* held that HDPE bags should be classified under Chapter Heading 39 and not Chapter Heading 63. While appeal against the aforesaid decision of the said High Court was pending before this Court, the Central Board of Excise and Customs in order to bring about an uniformity in classification, issued a circular dated 24-09-1992 in exercise of powers conferred under Section 37-B of the Central Excises and Salt Act, 1944, in terms of which HDPE strips and tapes of width not exceeding 5 mm were to be "henceforth" classified under sub-heading 3920.32 and sacks made therefrom under sub-heading 3923.90 of the Tariff. The circular was published on 15-10-1992. Appellant-assessee classified HDPE bags manufactured by it under Chapter 63 of the Tariff Act for the period 1-4-1992 to 15-10-1992. Relying on the said circular, Respondents issued a show cause notice upon the Appellants to pay differential duty under Chapter 39 for the period 1-4-1992 to 15-10-1992. The cause having been shown, the Assistant Commissioner dropped the proceedings. Appeal filed by Revenue before the Commissioner was dismissed. Revenue filed appeal before the Tribunal. Tribunal relying upon a three-Judge Bench decision of this Court in ITW Signode case** held that in view of the amendment of Section 11A of the Central Excise Act, the validity whereof had been upheld, the Revenue was within its jurisdiction to get the differential duty which had not been recovered. In appeal to this Court, Appellant submitted that the Tribunal failed to take into consideration a decision of this Court in HM Bags Manufacturer***, in its correct perspective, wherein it was held that the word "henceforth" used by the Board must lead to the conclusion that only prospective effect thereto could be given and not a retrospective effect. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 1156 |
Petitioner | M/s. Jai Fibres Ltd. |
Respondent | Commissioner Of Central Excise, Mumbai-iii |
SCR | [2007] 12 S.C.R. 82 |
Judgement Date | 2021-11-15 |
Case Number | 1950 |
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