Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 2001 - Central Excise Rules 1944 - r.57AB (JC) - CENVAT Credit Rules |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Central Excise Rules, 1944 - r.57AB (JC) - CENVAT Credit Rules, 2001 - r. 3 (4) - Procurement of iron ore pellets (raw material/) iointly by the assessee-manufacturer and its sister company under a joint procurement policy - Credit was availed by the principal company of the duty paid on the entire quantity so procured - Later as and when required by the sister company, the pellets were transferred to .it by the principal company on reversing an amount equal to the CENVAT credit availed on inputs that were so transferred - In addition the principal company also raised debit notes OJI the sister company for recovering actual expenditure incurred by it in relation to the procuring of such iron ore pellets such as bank charges, interest etc.- Revenue issued show cause notice to both the companies stating that the amounts mentioned in the debit note from principa.l company to sister company were also includible in the assessable duty valuation as additional consideration because the transaction between the two companies rl'as one. of sale and not transfer - The show cause notice upheld by the Co111111issiV-ner - The Tribunal reversed the order of Commissioner holding that the transfer of the raw material by principal co111pany to its sister company was not a sale - On appeal, held: The transaction in . .the present case is a tramfer and not sale - As per circular dated 1. 7.2001, in case of transfer; the value to be adopted is the value ._ shown in the invoice on the basis of which CENVAT credit was taken by the assessee i.e. invoice of the supplier of the pellets to t_he assessee. - Post manufacturing expenses also cannot be loaded on to the amount equal to the duty of excise leviable on.such goods - Central Excise Act, 1944 - s. 4{1)(a) - Circular dated 1. 7.2002. |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2016 INSC 385 |
Petitioner | Commissioner Of Central Excise, Raigad |
Respondent | Mis. !spat Metallics Industries Ltd. & Ors. |
SCR | [2016] 3 S.C.R. 766 |
Judgement Date | 2016-06-05 |
Case Number | 2562 |
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