SOME IMPORTANT CASE LAWS OF IDT

SUMMARY OF RECENT IMPORTANT CASE LAWS

CENTRAL EXCISE ACT, 1944

Sr.No.	CASE LAWS	COURT	DECISION	Page No.
BASIS CONCEPTS
	Tarpaulin International-2010	S.C.	The process like cutting, stitching and fixing of eye-belts on tarpaulin made-ups does not amounts to manufacture.
	Bata India Limited-2010	S.C.	Unvulcanised sandwiched fabric assembly produced in the Assessee’s factory is not is commercially distinct or marketable product.
	Alembic Glass Industries Ltd. 2010	S.C.	The process of colour printing and decoration of the glassware is does not amounts to manufacture
	Tikitar Industries 2010	S.C.	The process of converting straight grade bitumen into blown grade bitumen through Oxidation, known as blowing process, does not amount to manufacture
	Solid & Correct Engg. Works – 2010	S.C.	Asphalt Drum Mix Plant by using duty paid components is movable property and tantamount to manufacture of excisable goods.
	Bemcee Ltd. – 2010	S.C.	Sitting/s hearing of steel coils to produce sheets does not constitutes ‘manufacture’ for the purpose of levy of Central Excise Duty
	Sony Music Entertainment (I) Pvt. Ltd. – 2010	H.C.	The activity of packing imported Compact discs in a jewel box along with inlay card would not amount to manufacture
	Larsen & Toubro Limited – 2009	H.C.	Waste water treatment plant not commercial movable property came into existence until the assembling was completed by embedding different parts in the civil works.
VALUATION
	Xerographic Ltd. 2010	S.C.	Price between Assessee and buyers is on principal to principal basis. Hence Normal price is the value of goods.
	Maruti Suzuki India Ltd. 2010	TRL-LB	Any amount collected by the dealer towards pre-delivery inspection or after sale services from the buyer of the goods on the behalf of manufacture is includible in value of goods sold by manufacture to dealer
	Gujarat Goldcoin Ceramics Ltd. 2009	TRI	In case of MRP based valuation revenue has no right to investigation the amounts collected by the manufacturers towards the goods sold by them so it was held that demanding duty on transit insurance collected from the dealers is not in accordance with law.
SSI
	Prem Khalsa Iron Steel Rolling Mills 2010	H.C.	Any clearances made under Section 3-A (compounded levy) of the Act cannot be excluded for determination of aggregate value of clearance of 400 lacs.
	Unison Electronics Pvt. Ltd. 2009	S.C.	United Tele Shopping (in short ‘UTS’) and Tele Shopping Network (in short ‘TSN’) sicker on the package is the brand name of another person which makes them ineligible for the SSI exemption
CENVAT CREDIT RULES, 2004
	Madras Cements Ltd. 2010	S.C.	If the mines are captive mines so that they constitute one integrated unit together with the concerned cement factory, Cenvat credit on capital goods used in mines will be available to the assessee.
	Rajasthan Spinning & Weaving Mills ltd. 2010	S.C.	Steel plants and M.S. channels used in the fabrication of chimney which is an integral part of the diesel generating set (Pollution Control Equipment). Therefore, any equipment used for the said purpose has to be treated as an accessory of diesel generating set & eligible for Cenvat Credit
	Vandana Global Ltd. 2010	TRI	An explanation is being inserted in Rule-2 ‘Inputs’ shall not include cement, angles, channels, CTD or TMT bars and other items used for construction of shed, building or structure for support of capital goods. It is clarificatory in nature and has retrospective effect.
	Hawkins Cookers Ltd. 2010	H.C.	Packing material used at depot for goods is eligible for Cenvat Credit
	Bansal Alloys & Metals Ltd. 2010	TRI	As per Rule 3(5) it is clear that the manufacturer shall be required to pay an amount equal to the credit in respect of such input or capital goods removed as such. Rule 3(5) does not indicate for payment of equal amount in respect of credit of input service.
	Nish Fibres 2010	H.C.	If claim regarding depreciation on excise element of capital goods was withdrawn by filing the revised return then cenvat credit on such capital goods is available.
	Ambuja Cements Eastern Ltd. 2010	H.C.	Welding electrodes used in repairs and maintenance of plant and machinery are inputs as defined under Rule 2(g) of the Cenvat Credit Rules, 2002 and thus, entitled for Cenvat Credit.
	Tata Engineering & Locomotive Co. Ltd. 2010	H.C.	Laboratory test or quality check is always in relation to the manufacture of finished goods. Laboratory is also located within the premises of factor of production. Hence Cenvat Credit is available on raw material destroyed in laboratory test.
	Wrigley India Pvt. Ltd. 2010	H.C.	Putting of “Boomer-tattoo” wrapped bubble gum is not a packing material & not eligible for Cenvat credit.
	Maruti Suzuki Ltd. 2009	S.C.	Assessee would not be entitled to claim CENVAT credit of naphtha used in generation of electricity where it sells outside the factory to the joint ventures, vendors etc.
	Coca Cola India Pvt. Ltd. 2009	H.C.	Wordings used in the definition of input service Rule 2(I) are activities relating to business such as has very wider scope. It must follow that all and any activity relating to business falls within the definition. The word ‘such as, also illustrative and not exhaustive.
	Ambuja Cements Ltd. 2009	H.C.	Assessee sale were ‘for destination’ and was complete at door steps of the customer. Hence he eligible for Cenvat Credit on outward transportation
CLASSIFICATION OF GOODS
	Bhushan Steels And Strips Ltd. 2010	S.C.	The side slittings, end cuttings of HR/CR coil and others will be classifiable under Heading 72.16 of the Schedule to the Tariff Act being offcuts of different shapes and sizes.
	N.I. Systems (India) P. Ltd. 2010	S.C.	PXI Controllers, I.O. Modules and Chassis were rightly classified under Chapter 90 as parts and accessories of Automatic Regulating or Controlling Instruments and Apparatus in terms of CTH 9032.90.00.
	L.M.L. LTD. 2010	S.C.	CD ROMs containing images of drawings and designs of engineering goods classified the same under heading 8524.39 (Recorded CD ROMs, liable to duty).
DEMAND & RECOVERY
	International Auto Ltd. 2010	S.C.	Interest under section 11AB is livable on voluntary delayed or deferred payment of duty for whatever reasons.
	Kushal Fertilizers (P) Ltd. 2010	S.C.	There had been no willful suppression on the part of the assessee and hence the question of involving the extended period of jurisdiction did not arise.
	Hero Cycles Ltd. 2010	S.C.	If court order to the department for amendment in original order for correction of mistake then it was not a case of violation of principles of natural justice. We will have to issue directions to the Department to amend, the original order of assessment for refund.
	Wood Polymer Limited 2010	H.C.	The assessee had never applied for revision of classification and once the classification is finalized and duty is paid accordingly, unless and until such classification is challenged and/or disturbed, it is not possible for the assessee to make refund claim based on some order passed by the Appellate authority in other case.
	SKF INDIA Ltd. – 2009	S.C.	Interest is payable by an assessee on differential duty arising due to revision of prices with retrospective effect ?
APPEAL, REVIEW & REVISION
	Amchong Tea Estate 2010	S.C.	Commissioner (Appeals) cannot condone the delay beyond period of 30 days.
SETTLEMENT COMMISSION & ADVANCE RULING
	Mahendra Petrochemicals Ltd. 2010	H.C.	A person, who may not be the importer or exporter, can file such an application before the Commission, if he is served with a show cause notice charging him with duty.
	LIOI v/s Customs & Excise settlement Commission	H.C.	Settlement Commission had jurisdiction to deal with the question relating to the recovery of drawback erroneously paid by the Revenue.
	AUSTRALIAN FOODS LTD. 2010	H.C.	·        Settlement omission does not have the power to decide question of Law. ·        Cookies cleared to Hotels/Airways were assessable u/s. 4 at transaction value.
	Sudarshan Cargo Pvt. Ltd. 2010	H.C.	Redemption fine is payable only if goods are available to Department for confiscation.
	Zuari Cement Ltd. 2009		In order to be eligible for Advance ruling, the activity of producing / manufacture of goods for which a ruling is sought, has to be a “proposed” activity and not an ongoing one.
SERVICE TAX
	Amitdeep Motors – 2010	H.C.	Merely arranging the deal between Maruti & Govt. agency and earning commission, does not bring assessee under clause “Clearing and Forwarding Agent”
	Idea Mobile Communication Ltd. 2010	H.C.	The value of SIM card supplied by the assessee forms part of taxable service on which service tax is payable by the assessee.
CUSTOMS ACT, 1962
	Prabhu Dayal Prem Chand 2010	S.C.	Assessment purely on the basis of LME, Bulletin without any corroborative evidence of imports at or near that price is not permissible under law.
	Pernod Ricard India (P) Ltd. 2010	S.C.	Adjustment to transaction value of similar goods should be based on demonstrated evidence. In absence thereof, the adjustment is invalid.
	Lan Eseda Industries Ltd. v CC (2010)	S.C.	When the price declared by the Importer is not the true transactions value on account of big difference in the prices at which similar computers are imported from others and declared value of the computers imported from M/s. TCAL, the said prices can be rejected.
	Atherton Engineering Co. Pvt. Ltd. 2010	H.C.	Artemia cyst (brine shrinp eggs) should be classified as feeding materials for prawns under the heading 2009. These embryos might not be proper prawn feed at the time of importation but could become so, after incubation.
	Essar Steel Limited – 2010	H.C.	Clearince from DTA unit to the SEZ only for allowing export befits to seller and for levy of export duty under Sec.12 of customs Act. Hence, no Export duty is payable goods which are cleared from DTA unit to the SEZ.
	Decorative Laminates (I) Pvt. Ltd. 2010	H.C.	No remission under Sec. 23 is available on imported goods destroyed in warehouse after extension period.