Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Tariff Headings 2404.49 and 2404.40/Notification No.121/94 Central Excise Act 11(AC) 1944: Ss. 11(A) 11(AB) 173Q/ Central Excise Rules Excise Tariff Act 1944: R. 9(2) 1985 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Central Excise Act, 1944; Ss. 11(A), 11(AB), 11(AC), 173Q/ Central Excise Rules, 1944; R. 9(2)/ Excise Tariff Act, 1985, Tariff Headings 2404.49 and 2404.40/Notification No.121/94: Levy of excise duty-Kimam manufactured by assessee in its unregistered/unlicensed factories-Assessee claiming the product as intermediate item and not marketable-Revenue held the product as distinct, identifiable and marketable and levied excise duty by invoking extended period of limitation as assessee failed to obtain registration and MODVAT credit inadmissible Affirmed by Tribunal by remanding the matter to Revenue for re-examination of the applicability of Notification No. 121/94-On appeal, Held: Assessee manufactured and used the product in question for manufacturing the final product in its other factories-Assesssee also purchased similar product from other licensed dealers for manufacturing the final product-Hence, Revenue rightly held the product in question as distinct, identifiable product known to the market, and thus excise duty leviable thereon. Extended period of Limitation-invoking of-Held: Since assessee clandensinely manufacturing the product in question without getting the units registered/licensed with the Excise department, under the circumstances Revenue was right in invoking the extended period of limitation. MODVAT Credit-Right to claim against excise duty on final product vis a vis using it as defence of bonafides against invoking of larger period of limitation in terms of proviso to Sec. 11A(1) of the 1944 Act-Distinction between. Words & Phrases-Marketability, 'Dutiability' 'test of marketablity', 'Wilfulness '-Meaning of in the context of Central Excise Act, 1944. The questions which arose for determination in these appeals were as to whether excise duty could be levied on the product 'Kimam' containing chewing tobacco classifiable under Tariff Heading 2404.40/2404.49 of the Excise Tariff Act, which was manufactured by the assessee in its units unlicensed/unregistered with the Excise Department and used it for manufacturing 'Tulsi Zafrani Zarda'/final product in its other factories; as to whether Revenue was right in invoking the extended period of limitation under the proviso to Section 11A (1) of the Central Excise Act; and as to whether the benefit of proforma/modvat credit in respect of the product, was available in the facts and circumstances of the case. |
Judge | Honble Mr. Justice S.H. Kapadia |
Neutral Citation | 2005 INSC 220 |
Petitioner | Dharampal Satyapal |
Respondent | Commissioner Of Central Excise, New Delhi |
SCR | [2005] 3 S.C.R. 746 |
Judgement Date | 2005-04-21 |
Case Number | 1506 |
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