Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1944: Central Excise Act |
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:'CRC 2-26' - Exemption under Notification - Entitlement of - Held: Product 'CRC 2-26' is blended lubricating oil, thus assessee entitled to exemption under the Notification - Notification No. 120/84-CE dated 11.5.1984.'CRC Acryform' - Exemption under Notification - Entitlement of - Held: 'CRC Acryform' entitled to exemption under the Notification - Product did not carry on it brand name/trade name of a person not entitled to the benefit of Notification - Notification No. 175/86-CE dated 1.3.1986.S. 11A(1) proviso - Extended period of limitation - Invocation of - Assessee manufacturing product 'CRC 2-26' and 'CRC Acryform' - Demand of duty invoking extended period of limitation - Sustainability of - Held: There was no willful misstatement or suppression of facts by assessee with intent to evade duty with regard to the products or about the relationship between assessee and the company who are bulk buyer of product manufactured by assessee - They are not related persons - Thus, extended period of limitation not available to the Department for initiating the recovery proceedings - Penalty cannot be levied.Respondent-manufacturer of products 'CRC 2-26' and 'CRC Acryform', claimed exemption under Notification No. 120/84-CE dated 11.5.1984 for the product 'CRC 2-26' and SSI exemption under Notification No. 175/86-CE dated 1.3.1986 for the product 'CRC Acryform'. The Department issued show cause notice to the respondent calling upon as to why excise duty should not be demanded. The Commissioner held that the respondent-assessee was not entitled to exemption of duty under the Notifications for its product Respondent filed an appeal. Tribunal held in favour of the respondent-assessee. Hence the present appeal.The question which arose for consideration in these appeals were: (1) Whether the product 'CRC 2-26' is a blended lubricating oil and thus, entitled to exemption under Notification No. 120184-CE dated 11.5.1984? (2) Whether the respondent is entitled to the benefit of Notification No. 175/86-CE dated 1.3.1986 in respect of the product 'CRC Acryform'? (3) Whether there was any willful misstatement or suppression of facts with intent to evade duty with regard to the products 'CRC 2-26' and 'CRC Acryform' or about the relationship between the respondent and BBL-bulk buyer of product manufactured by assessee so as to enable the Department to invoke the proviso to section 11A(1) of the Central Excise Act, 1944 in show cause notice and whether the demand raised in the said show cause notice is substantially time-barred? (4) Whether the Department could impose any penalty? (5) Whether the respondent was a facade or dummy of BBL and/or whether the respondent and BBL are related persons within the meaning of Section 4 (a) and 4 (3) (b) of the Act? |
Judge | Hon'ble Mr. Justice B. Sudershan Reddy |
Neutral Citation | 2007 INSC 903 |
Petitioner | Commissioner Of Central Excise, Mumbai-iv |
Respondent | M/s. Damnet Chemicals Pvt. Ltd. Etc. |
SCR | [2007] 9 S.C.R. 813 |
Judgement Date | 2007-09-10 |
Case Number | 3821-3823 |
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