Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Central Excise Rules 1944: r.57CC r/w rr.57A 578 and 570 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Central Excise Rules, 1944:r.57CC r/w rr.57A, 57B and 57D - Adjustment of Modvat/Cenvat credit on inputs used in exempted final products and maintenance of separate inventory and accounts of inputs by the manufacturer - Sulphuric acid, caustic soda, trichloro ethylene, Phosphoryl A and Phosphoryl B, cleared by assessees to fertilizer plants in terms of bonds executed by latter - Held: Technologically, commercially and in common parlance, sulphuric acid is treated as a by-product in extraction of non-ferrous metals by companies not only in India but all over the world -The facts regarding caustic soda, trichloro ethylene, Phosphoryl A and Phosphoryl B are identical - No doubt, r.57CC requires an assessee to maintain separate records for inputs which are used in the manufacture of two or more final products one of which is dutiable and the other is non-dutiable - But in the case of the respondents, the entire quantity of zinc concentrate has indeed been used in the production of zinc and no part can be traced in the sulphuric acid - It is for this reason, respondents maintained the inventory of zinc concentrate for the production of zinc and, therefore, there was no necessity and indeed it is impossible, to maintain separate records for zinc concentrate used in the production of sulphuric acid - Therefore, High Court has rightly held that requirements of r.57CC were fully met in the way in which respondents were maintaining records and inventory and the mischief of recovery of 8% under r. 57 CC on exempted sulphuric acid is not attracted - Notification No. 6/2002-CE.Constitution of India, 1950:Art. 226 - Alternative remedy and maintainability of writ petition - Writ petition filed challenging show cause notice issued alleging violation of r. 57CC of Central Excise Rule - Held: It was not merely the validity of show cause notice which was questioned - In the writ petition even the vires of r. 57 CC were challenged - That was a reason because of which the writ petitions were entertained, and rightly so, it is a different matter that while interpreting the rule, the High Court chose to read down the said rule and to give an interpretation which would save it from the vice of unconstitutionality - Central Excise Rules, 1944 - r. 57CC. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2014 INSC 363 |
Petitioner | Union Of India & Ors. |
Respondent | M/s. Hindustan Zinc Ltd. |
SCR | [2014] 6 S.C.R. 287 |
Judgement Date | 2014-05-06 |
Case Number | 8621 |
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