Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Act 1944-s. 4 (1) (b) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Act, 1944 - s. 4 (1)(b) - Ethyl Alcohol Denatured (SDS) - Used for manufacture of specified products by the other manufacturing unit of the assessee - Excise duty on - Payment of on costing basis in terms of r.6 (b)(i) of Valuation Rules, by the assessee - Revenue demanding on the basis of 6 (b)(i) at the highest price at which SDS was sold by other manufacturers on a particular date - CEGAT setting aside the levy holding that adoption of highest price not correct - On appeal, held: CEGAT was required to determine the appropriate price - Since it was not determined, matter remitted for fresh consideration - Central Excise Valuation Rules, 1975 - r.6 (b)(i) and (ii).Respondent-assessee was having two manufacturing units. One was distillery where they used to manufacture Ethyl Alcohol-Denatured (SDS). The stock of SDS was transferred to their other unit i.e. a chemical factory for manufacture of specified chemicals. They were paying excise duty at the time of transferring the stock of SDS to their other unit and MODVAT credit of the duty paid was availed in the other unit (chemical factory). The value had been arrived at by the assessee for the purpose of Section 4 (1)(b) of Central Excise Act, 1944, on costing basis in terms of Rule 6 (b)(ii) of Central Excise Valuation Rules, 1975 during the relevant period. Show Cause Notice was issued to the assessee, alleging that assessable value was to be fixed in terms of Rule 6 (b)(i) and not under 6 (b)(ii) and it was proposed to fix the assessable value on the basis of the highest price at which SDS was sold by other manufacturers on particular dates. Differential duty was demanded. Commissioner of Central Excise confirmed the demand.Appeal of the assessee was allowed by Customs, Excise and Gold (Control) Appellate tribunal (CEGAT) holding that the Department adopting the highest price was unsustainable in law. Hence the present appeal. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2007 INSC 1138 |
Petitioner | COMMNR. OF CENTRAL EXCISE, ALLAHABAD |
Respondent | M/S. SOMAIY A ORGANICS (INDIA) LTD. |
SCR | [2007] 11 S.C.R. 1068 |
Judgement Date | 2007-11-12 |
Case Number | 4975 |
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