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central excise

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Development of Industries -New Industrial Policy scheme in North- Eastern Region – some companies availed benefits of the scheme – commencement of Finance Act 2003 – certain benefit notifications were amended retrospectively from the date of original Notifications under the scheme under sec.153 of the Act – the Assistant Commissioner, Central Excise, Jorhat passed orders reviewing the entire refunded amounts under the original notifications – Challenged – High court dismissed the writs – D.B. confirmed the same – Appeals – Apex court held that allowed the appeals directing the parties to deposit the demanded amounts before the commissioner and directed to file regular appeals over the orders of Asst. Commissioner – and directed the department to treat the time consumed in these proceedings be considered as reasonable = CIVIL APPEAL NO. 3380 OF 2010 Hindustan Coca Cola Beverage (P) Ltd. … Appellant Versus Union of India and others … Respondents = 2014 – Sept. Month – http://judis.nic.in/supremecourt/filename=41913

Development of Industries -New Industrial Policy scheme in North- Eastern Region – some companies availed benefits of the scheme – commencement of Finance Act 2003 – certain benefit notifications were amended retrospectively from the date of original Notifications under the scheme under sec.153 of the Act –  the  Assistant  Commissioner,  Central Excise,  Jorhat  passed orders reviewing the … Continue reading

MODVAT – REFUND OF THE SAME WITH INTEREST AFTER 30 DAYS – the company is liable to pay MODVAT under Central Excise Act on HSD oil used in manufacturing yarns etc., and also liable to pay interest as it was not refunded with in 30 days of notice as the exemption granted to HSD oil was withdrawn by a Notification by central Govt. – High court wrongly find a fault on the government – allowed the writs – Apex court set aside the orders as there is no challange abount the vlaidity of notification or about sec.112 of Finance Act – they can not escape liability to refund the availd MODVAT with interest DESPITE OF NOTIFICATION = Union of India & Ors. Appellants Versus Maharaja Shree Umaid Mills Respondent = published in / cited in / Reported in judis.nic.in/supremecourt/filename=41098

      MODVAT –  REFUND OF THE SAME WITH INTEREST AFTER 30 DAYS –    the company is liable to pay MODVAT under Central Excise Act on HSD oil used in manufacturing yarns etc., and also liable to pay interest as it was not refunded with in 30 days of notice as the exemption … Continue reading

Customs Act,- “28. Notice for payment of duties, interest, etc. = whether duty on the supply and receipt of furnace oil and electricity respectively was required to be paid. The Development Commissioner, referring to a circular dated 12.10.1999 of the Ministry of Commerce, said as follows: – “They are procuring surplus power from their sister concern M/s. Uniworth Ltd. (Unit- 1, LOP dated 31.01.1989) under Permission No. 248(93) dated 01.11.1994 and the unit transferred 2590.30 KL of furnace oil to M/s. Uniworth Ltd. (Unit- 1) for their captive power consumption. No permission is required from this office for duty free import/ procurement of POL products for captive power consumption. It is further to clarify as per the Exim Policy provision, one EOU may sell/ transfer surplus power to another EOU duty free in terms of Ministry of Commerce Letter No. 1/1/98-EP dated 12.10.1999 (sic)” [Emphasis supplied] The relevant portion of the Ministry of Commerce Letter No.1/98-EP is extracted below: “2. No duty is required to paid (sic) on sale of surplus power from an EOU/EPZ unit to another EOU/EPZ unit. Development Commissioner of EPZ concerned would be informed in writing for such supply and proper account of consumption of raw material would be maintained by the supplying unit for calculation of NFEP.” = Yet, the appellant received a show cause notice from the Commissioner of Customs, Raipur, demanding duty for the period during which the appellant imported furnace oil on behalf of Uniworth Ltd. = in order to attract the proviso to Section 11- A(1) it must be alleged in the show-cause notice that the duty of excise had not been levied or paid by reason of fraud, collusion or willful misstatement or suppression of fact on the part of the assessee or by reason of contravention of any of the provisions of the Act or of the Rules made thereunder with intent to evade payment of duties by such person or his agent. There is no such averment to be found in the show cause notice. There is no averment that the duty of excise had been intentionally evaded or that fraud or collusion had been practiced or that the assessee was guilty of wilful misstatement or suppression of fact. In the absence of any such averments in the show-cause notice it is difficult to understand how the Revenue could sustain the notice under the proviso to Section 11- A(1) of the Act.’ = the show cause notice must put the assessee to notice which of the various omissions or commissions stated in the proviso is committed to extend the period from six months to five years. That unless the assessee is put to notice the assessee would have no opportunity to meet the case of the Department. It was held: …There is considerable force in this contention. If the department proposes to invoke the proviso to Section 11-A(1) , the show-cause notice must put the assessee to notice which of the various commissions or omissions stated in the proviso is committed to extend the period from six months to 5 years. Unless the assessee is put to notice, the assessee would have no opportunity to meet the case of the department. The defaults enumerated in the proviso to the said sub-section are more than one and if the Excise Department places reliance on the proviso it must be specifically stated in the show-cause notice which is the allegation against the assessee falling within the four corners of the said proviso….” = the burden of proof of proving mala fide conduct under the proviso to Section 28 of the Act lies with the Revenue; that in furtherance of the same, no specific averments find a mention in the show cause notice which is a mandatory requirement for commencement of action under the said proviso; and that nothing on record displays a willful default on the part of the appellant, we hold that the extended period of limitation under the said provision could not be invoked against the appellant. 27. In view of the afore-going discussion, the appeal is allowed and the decisions of the authorities below are set aside, leaving the parties to bear their own costs.

  REPORTABLE |IN THE SUPREME COURT OF INDIA | |CIVIL APPELLATE JURISDICTION | |CIVIL APPEAL NO. 6060 OF 2003 | | | |M/S. UNIWORTH TEXTILES LTD. |— |APPELLANT | |VERSUS | |COMMISSIONER OF CENTRAL EXCISE, RAIPUR |— |RESPONDENT |   J U D G M E N T   D.K. JAIN, J.   1. This … Continue reading

exempt from excise duty. The assessee utilizes cenvat duty paid Low Sulphur Heavy Stock (for short LSHS) as fuel input for generating steam. The steam so generated is utilized to generate electricity for the manufacture of fertilizer which is exempt from excise duty. According to the assessee, it is entitled to claim cenvat credit on the input, that is, LSHS even though fertilizer is exempt from excise duty. The correctness of this view was disputed by the Revenue.=whether under the Cenvat Credit Rules, 2002 an assessee is entitled to claim cenvat credit on duty paid LSHS utilized as an input in the manufacture of fertilizer exempt from duty.=There is an apparent conflict between GSFCL and Gujarat Narmada. 20. In GSFCL a view has been taken that modvat credit can be taken on LSHS used in the manufacture of fertilizer exempt from duty. Although this decision was rendered in the context of availing modvat credit under the Central Excise Rules, 1944 as they existed prior to the promulgation of the Cenvat Credit Rules, 2002 the principle of law laid down is general and not specific to the Central Excise Rules, 1944. The decision rendered in Gujarat Narmada has been rendered in the context of the Cenvat Credit Rules, 2002 and is, therefore, more apposite. However, since GSFCL does lay down a general principle of law, we have no option but to refer the issue to a larger Bench to resolve the conflict between GSFCL and Gujarat Narmada. The conflict to be resolved is whether under the Cenvat Credit Rules, 2002 an assessee is entitled to claim cenvat credit on duty paid LSHS utilized as an input in the manufacture of fertilizer exempt from duty. 21. The Registry may place the case papers before Hon’ble the Chief Justice for constituting a larger Bench to decide the aforesaid conflict of views.

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 4189-4196 OF 2010 Commissioner of Central Excise, Vadodara …..Appellant Versus Gujarat Narmada Valley Fertilizers Company Ltd. …..Respondent   J U D G M E N T Madan B. Lokur, J. 1. The assessee utilizes cenvat duty paid Low Sulphur Heavy Stock (for … Continue reading

These appeals arise out of Judgment and Order passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi Bench [for short “CEGAT”] on 02.08.2002 whereby the Tribunal had allowed the appeals filed by the respondents holding that the respondents were not guilty of clandestine removal of excisable goods and also that the goods of

REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NOS. 4500-4502 OF 2003 Commissioner of Central Excise, Mumbai …. Appellant Versus M/s. Kalvert Foods India Pvt. Ltd. & Ors. …. Respondents JUDGMENT Dr. MUKUNDAKAM SHARMA, J. 1. These appeals arise out of Judgment and Order passed by the Customs, Excise and Gold … Continue reading

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