Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Tariff Act Rules for Interpretation of the + Schedule r. 2(a) to s. XVI of HSN 1985 |
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; Rules for Interpretation of the Schedule; r. 2(a) to s. XVI of HSN:Valuation - Assessee manufacturing air-conditioning and refrigerating machinery - Clearance of compressor with fly wheel, safety valve, filter and other bought out items from the factory separately - Notice - Authorities observing that assessee deliberately undervalued the compressor and overvalued the accessories by supplying the accessories/parts separately to buyers, confirmed demand of differential amount of duty - Tribunal remitting the matter to Revenue holding that the compressor as cleared by the assessee from the factory stood cleared as stand alone item and not removed in an unassembled condition, therefore, general interpretation rule not applicable - On appeal, Held: There is confusion in application of the concept of valuation and classification by the Revenue while confirming the demand of differential amount of excise duty-Thrust of show cause notice is towards undervaluation and not classification - Tribunal rightly observed that General Interpretation Rule has no application to the present case and that parts/accessories could not have been classifiable as compressor under tariff Heading 84.14 - Since assessees supplied accessories and other bought out items to buyers as a package, the Revenue should have examined the pricing aspect of the entire package for the purpose of assessment/levy of excise duty - Under the circumstances, Revenue is directed to de novo consider the question of valuation in terms of the provisions of the Act in addition to other question as remitted by the Tribunal - In doing so, services of the cost accountant may be utilized to arrive at correct value of the package - Directions issued. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2007 INSC 960 |
Petitioner | Commissioner Of Central Excise, Delhi |
Respondent | M/s. Frick India Ltd. And Anr. |
SCR | [2007] 10 S.C.R. 172 |
Judgement Date | 2007-09-21 |
Case Number | 1825-1827 |
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