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Latest Amendments Central Excise

The document discusses various provisions related to central excise, customs, and service tax in India. Some key points covered include: - Chartered accountants can be appointed for valuation audits under central excise. - Exporters can bring duty paid packing materials into export warehouses with permission. - Capital goods manufactured for captive use in EOUs will be liable for duty when cleared outside. - Safeguard duty, countervailing duty, and anti-dumping duty provisions apply to customs. - Penalty for customs rule/regulation contravention is Rs. 50,000. - Service tax provisions were expanded to include rail transport of goods and increased thresholds for small service providers.

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42 views95 pages

Latest Amendments Central Excise

The document discusses various provisions related to central excise, customs, and service tax in India. Some key points covered include: - Chartered accountants can be appointed for valuation audits under central excise. - Exporters can bring duty paid packing materials into export warehouses with permission. - Capital goods manufactured for captive use in EOUs will be liable for duty when cleared outside. - Safeguard duty, countervailing duty, and anti-dumping duty provisions apply to customs. - Penalty for customs rule/regulation contravention is Rs. 50,000. - Service tax provisions were expanded to include rail transport of goods and increased thresholds for small service providers.

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vickycd
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© Attribution Non-Commercial (BY-NC)
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LA TEST A END ENTS M M CENTRAL EXCISE Lam i n a t e d Ro l l s i n c l u d e d i n p a c k i n g ma t e r i a l s f o r e x emp t i o n t o SS I s und e r No t i f i c a t i o n No . 8 / 2 0 0 3 [Circular No.9/2009 dt. 07.07.2009] W .e.f. 01.04.

2009, a Cha r t e r e d Accoun t a n t wi t h i n t h e mean i n g o f t h e Cha r t e r e d Accoun t a n t s Ac t , 1949 c a n a l s o b e nom i n a t e d by t h e Ch i e f Commi s s i o n e r f o r Va l u a t i o n Aud i t u / s 14A a n d 14AA . Conditions for bringing duty paid packing materials into the export warehouse: The e x p o r t e r s s h a l l b e a l l owed t o b r i n g t h e du t y p a i d p a c k i n g ma t e r i a l s i n t o t h e e x p o r t wa r e h o u s e . The e x p o r t e r mus t s u bm i t a wr i t t e n r e q u e s t t o t h e J u r i s d i c t i o n a l AC /DC who may g r a n t t h e p e rm i s s i o n f o r on e yea r . The e x p o r t e r h a s t o ma i n t a i n p r o p e r a c c o u n t o f s u c h good s a n d s h a l l no t c l a im a n y e x p o r t b e n e f i t l i k e r e b a t e o f du t y p a i d on t h e s a i d ma t e r i a l . [Circular No.900/20/2009 dated 06.10.2009] Cap i t a l Good s manu f a c t u r e d f o r Cap t i v e Con s ump t i o n wi t h i n t h e 100% EOU s h a l l

b e l i a b l e f o r du t y a t t h e t im e o f c l e a r ance o f s u c h c a p i t a l good s ou t s i d e t h e 100% EOU o r d e b o nd i n g o r e x i t f r om t h e EOU Sc h eme . [Circular No.22/2009 dt.19.08.2009] Compound e d Levy Sc h eme b a s e d on Annu a l P r o d u c t i o n [ S e c 3A o f CEA] Deemed Mar k e t a b i l i t y i n c a s e o f a n y a r t i c l e , ma t e r i a l o r s u b s t a n c e wh i c h i s c a p a b l e o f b e i n g bough t a n d s o l d for a c o n s i d e r a t i o n . [Explanation to Sec. 2(d)] Deemed Manu f a c t u r e Lab e l i n g o r r e l a b e l i n g , p a c k i n g o r r e p a c k i n g on No t i f i e d Good s Cen t r a l Ex c i s e (D e t e rm i n a t i o n o f Re t a i l S a l e P r i c e o f Exc i s a b l e Good s ) Ru l e s , 2008 Con t e n t s o f a n I n v o i c e i n c a s e o f a P rop r i e t a r y conc e r n Co l l e c t i o n o f Du t y i n e x c e s s f r om t h e Cu s t ome r Sc r u t i n y o f r e c o r d s by a P r o p e r Of f i c e r i n c a s e o f good s manu f a c t u r e d i n 100% EOU / EPZ bu t s o l d t o DTA Annu a l S t a t emen t t o b e s u bm i t t e d by p e r s o n s who h a v e p a i d t h r o u g h PLA a n d / o r CENVAT Cr e d i t . Exemp t i o n f r om f i l i n g Annu a l F i n a n c i a l I n f o rma t i o n Re t u r n a v a i l a b l e t o I n d i a n

Ord i n a n c e F a c t o r i e s , Dep a r tme n t o f De f e n c e P r o d u c t i o n , Min i s t r y o f De f e n c e . CUSTO MS Powers of Adjudication Competent Authority Cases involving suppression of facts Other Cases I n s p e c t o r No powe r No powe r Sup e r i n t e n d e n t No powe r No Powe r As s t . / Dy . Commi s s i o n e r Value of goods up t o Rs . 2 Lakh s Value of goods up t o Rs . 2 Lakh s Add l . Commi s s i o n e r / J o i n t Commi s s i o n e r Duty amount involved up t o Rs . 5 0 Lakh s Value of goods up t o Rs . 5 0 Lakh s Commi s s i o n e r Wi t h o u t l im i t Wi t h o u t l im i t W .e.f. 01.04.2009, Whe r e t h e Cen t r a l Gov e r nmen t h a s no t i f i e d Ta r i f f Va l u e f o r s im i l a r p r o d u c t s manu f a c t u r e d i n Ind i a , t he s ame v a l u e s h a l l b e c o n s i d e r e d f o r impo r t e d good s f o r c ompu t a t i o n o f ACD . [Sec.3 of CETA] P r o v i s i o n s o f t h e Cu s t oms Ac t , r u l e s a n d r e g u l a t i o n s mad e t h e r e u n d e r , i n c l ud ing t ho se r e l a t i ng t o t h e da t e f o r d e t e rm i n a t i o n o f

r a t e o f du t y , a s s e s smen t , non l e v y , sho r t l e v y , r e f und s , i n t e r e s t , app e a l s , o f f e n c e s and pen a l t i e s s h a l l a p p l y t o Sa f e g u a r d Du t y u / s 8B / Sp e c i f i c S a f e g u a r d Du t y u / s 8C / Coun t e r Va i l i n g Du t y u / s 9 / An t i Dump i n g Du t y u / s 9A o f t h e Cu s t oms Ta r i f f Ac t . Pe n a l t y f o r c o n t r a v e n t i o n o f Ru l e o r Regu l a t i o n i s Rs . 5 0 , 0 0 0 [Sec.158 of CUA] Conveyances: Impo r t e d o r e x p o r t good s may b e r e c e i v e d , s t o r e d , d e l i v e r e d , d i s p a t c h e d o r o t h e rw i s e h a n d l e d i n a c u s t oms a r e a i n t h e mann e r p r e s c r i b e d a n d t h e r e s pon s i b i l i t i e s o f pe r s on s engaged i n t h e a fo r e s a i d ac t i v i t i e s sha l l be such a s may b e p r e s c r i b e d . [Sec.141 of CUA] SER ICE TAX V W .e.f. 01.09.2009, S e r v i c e s amoun t i n g t o manu f a c t u r e o f only excisable goods s h a l l no t c ome und e r Bu s i n e s s Aux i l i a r y Se r v i c e s u / s 65 ( 1 9 ) . W .e.f. 01.09.2009, T r a n s p o r t o f Good s by Ra i l s h a l l b e l i a b l e f o r s e r v i c e t a x u / s 65 ( z z z p ) . W .e.f. 01.09.2009, Cen t r a l Gove r nmen t s h a l l h a v e powe r t o s p e c i f y t h e d a t e

o f d e t e rm i n a t i o n o f r a t e o f s e r v i c e t a x and t h e p l a c e o f p rov i s i on o f t a x ab l e s e r v i c e [Sec.94]. W .e.f. 01.09.2009, S t o c k Bro k e r s s h a l l no t i n c l u d e SubB r o k e r s u / s 65 ( 1 0 5 ) ( a ) . The l im i t f o r Reg i s t r a t i o n o f Sma l l Se r v i c e P r o v i d e r s i s i n c r e a s e d t o Rs . 9 , 0 0 , 0 0 0 Powe r s v e s t e d on o f f i c i a l s o f t h e d e p a r tmen t t o a c c e s s t h e r e g i s t e r e d p r em i s e s a n d t h e do c umen t s r e c o r d s ma i n t a i n e d t h e r e a t . [Rule 5A of Service Tax Rules, 1994] The l im i t f o r Exemp t i o n t o Sma l l Se r v i c e P r o v i d e r s i s i n c r e a s e d t o Rs . 1 0 , 0 0 , 0 0 0 Exemp t i o n r e l a t i n g t o Bu s i n e s s Ch i t f u n d s a n d GTA Mean i n g o f A s s o c i a t e d En t e r p r i s e a s p e r S e c t i o n 92A o f I n c ome t a x Ac t , 1961 [Sec.65(7b)] Va l u e o f Ta x a b l e S e r v i c e i n c l u d e s Su s p e n s e Accoun t T r a n s a c t i o n s Ca t e g o r y o f Impo r t s a n d Expo r t s i n r e s p e c t o f New l y i n t r o d u c e d Se r v i c e s P rov i s i o n o f Se r v i c e s t h r o ugh I n t e r n e t Se r v i c e s by Ove r s e a s Book i n g Agen t s Exemp t i o n t o Bu s i n e s s Exh i b i t i o n o f Good s by t h e o r g a n i z e r o f Bu s i n e s s

Exh i b i t i o n t o a manu f a c t u r e r o f good s . [Notfn No. 43 / 2007 dt 29.11.2007] Exemp t i o n b e n e f i t s t o Expo r t e r o f Good s f o r p r o c u r e t a x a b l e i n p u t s e r v i c e s wi t h o u t p a ymen t o f Se r v i c e Ta x . [Notfn 41 / 2007 dt. 06.10.2007] Pa ymen t o f Adva n c e S e r v i c e Ta x . [Rule 6(1A)] Ad j u s tmen t a g a i n s t e x c e s s S e r v i c e Ta x p a i d . [Rule 6(3)] Se r v i c e Ta x Re t u r n P r e p a r e r Pe n a l t i e s u / s 77 Be s t J u d gmen t As s e s smen t Mone t a r y l im i t f o r Ad j u d i c a t i o n o f Se r v i c e Ta x l i a b i l i t i e s t o CEOs Se r v i c e Ta x Di s p u t e Re s o l u t i o n Sc h eme , 2008 Re f u n d o f P r e d e p o s i t [Sec.35FF of CEA, 1944] I n c l u s i o n o f Fo r e x Br ok i n g i n Bank i n g a n d F i n a n c i a l Se r v i c e s . I n c l u s i o n o f I n f o rma t i o n Te c h n o l o g y So f tw a r e i n Bu s i n e s s Aux i l i a r y Se r v i c e Ta x a b l e s e r v i c e o f Ca r g o Hand l i n g Se r v i c e Se r v i c e s p r o v i d e d by a Con s u l t i n g Eng i n e e r i n t h e d i s c i p l i n e o f Compu t e r s o f tw a r e Eng i n e e r i n g i s t a x a b l e .

Sp e c i f i c Exemp t i o n i n c a s e o f s e r v i c e s p r o v i d e d t o a GTA [ Notfn 1/2009 ST / 05.01.2009] Ta x a b i l i t y a s GTA i f [Circular No.104/07/2008 ST / 06.08.2008] GTA p r o v i d e s a n c i l l a r y a n d i n t e rmed i a r y s e r v i c e s s u c h a s l o a d i n g / un l o a d i n g , p a c k i n g / unp a c k i n g , t r a n s s h i pmen t , t empo r a r y wa r e h o u s i n g e t c . GTA und e r t a k e s p a c k i n g a s a n i n t e g r a l pa r t o f t h e s e r v i c e p rov i d ed . T ime s e n s i t i v e t r a n s p o r t a t i o n o f good s by r o a d . Te c h n i c a l Te s t i n g & Ana l y s i s o f s o f tw a r e i s t a x a b l e Te c h n i c a l I n s p e c t i o n & Ce r t i f i c a t i o n o f I n f o rma t i o n Te c h n o l o g y So f tw a r e i s t a x ab l e Tou r Ope r a t o r s S e r v i c e do e s no t i n c l u d e S t a g e Ca r r i e r & t o u r s o r g a n i z e d by a n e d u c a t i o n a l bod y . COM MON TOP ICS CENV T CRED A IT Input excludes [Notification No.16/2009 dated 07.07.2009] Cemen t , Ang l e s , Chann e l s , Cen t r a l l y Tw i s t e d De f o rm Ba r (CTD ) o r The rmo Mech a n i c a l l y T r e a t e d b a r ( TMT ) a n d o t h e r i t em s

u s ed f o r con s t r u c t i o n o f f a c t o r y s h ed , bu i l d i n g o r l a y i n g o f f o u n d a t i o n o r mak i n g o f s t r u c t u r e s f o r s u p p o r t o f c a p i t a l good s . Payment of Duty / Tax on Exempted Clearances / Services (when Books of accounts not maintained): [Notification No.16/2009 dated 07.07.2009] Manu f a c t u r e o f e x emp t e d good s Pay 5% o f Ba s i c S a l e P r i c e ( E x c l u d i n g s a l e s t a x and o t h e r t a x e s ) o f s u ch e x emp t e d good s [ e i t h e r by d e b i t t o CENVAT o r PLA ] i . e . v a l u e o f e x emp t e d c l e a r a n c e s / r emov a l s P r o v i d e r o f Ex emp t e d S e r v i c e Pay 6% o f v a l u e o f e x emp t e d s e r v i c e s W riting off of W ork in progress (WI [Circular P): No.907/27/2009 CX / 07.12.2009] WP Treatment as applicable to I Con s i d e r e d a s manu f a c t u r e d good s F i n i s h e d good s L i a b l e t o p a y ED un l e s s r em i t t e d u / r 21 . Con s i d e r e d a s no t manu f a c t u r e d good s I n p u t s CENVAT c r e d i t t a k e n s h a l l b e r eve r s ed . I n c a s e CENVAT c r e d i t h a s b e e n wrong l y t a k e n e v e n i f s u c h wrong c r e d i t h a s

b e e n r e v e r s e d wi t h o u t u t i l i z i n g t h e c red i t , i n t e r e s t und e r Ru l e 14 s h a l l a p p l y . ( s i n c e t h e r u l e u s e s t h e wo r d s t a k e n o r u t i l i z e d wrong l y ) [Circular No.897/17/2009 dated 03.09.2009] Impo r t e r s h a l l b e e n t i t l e d t o a v a i l o f t h e Dr awb a c k o r CENVAT c r e d i t o f a d d i t i o n a l du t y l e v i a b l e u / s 3 o f CUA aga in s t t h e amoun t d e b i t e d i n t h e Du t y F r e e En t i t l emen t Cr e d i t Ce r t i f i c a t e . I n p u t S e r v i c e C l e a r a n c e up t o t h e p l a c e o f r emov a l f o r a manu f a c t u r e r CENVAT Cr e d i t Ru l e s i n r e s p e c t o f I n p u t S e r v i c e Di s t r i b u t o r . [Rules 7 and 7A] Du t y p a i d on Debond i n g o f a un i t CENVAT c r e d i t e l i g i b l e f o r 100% EOU , un i t s l o c a t e d i n EHTP / STP . [Rule 3(7)]. Ob l i g a t i o n s o f Manu f a c t u r e r s o r Se r v i c e P r o v i d e r s o f bo t h Exc i s a b l e a n d Exemp t e d Good s p r o v i d i n g Ta x a b l e a n d Exemp t e d Se r v i c e s [Rule 6] Gen e r a l P en a l t y f o r c o n t r a v e n i n g t h e p r o v i s i o n s o f CENVAT Cr e d i t Ru l e s , 2004 . AUTHOR ITY FOR ADV ANCE RULINGS

F r om t h e d a t e no t i f i e d by t h e Cen t r a l Gov e r nmen t , t h e AAR und e r t h e I n c ome Ta x Ac t , 1961 s h a l l e x e r c i s e t h e powe r s o f t h e AAR und e r Cen t r a l Exc i s e Ac t , 1944 [CUA S.28F] D MAND & R E ECOVE Y OF DUTY, R R EFUND AND D W RA BACK NonDeduction of air freight charges from FOB Value: 1 . Situation: The buy e r a n d t h e e x p o r t e r h a v e c o n t r a c t e d t h e good s on FOB b a s i s a n d t h e s ame i s r e f l e c t e d i n t h e c o n t r a c t a n d t h e LC . Bu t du e t o a n e x i g e n c y s u c h a s d e l i v e r y t im e l im i t , t h e expo r t e r i s f o r c ed t o s e nd s u ch good s by a i r a t h i s own e x p e n s e . 2 . Drawback: Su c h a i r f r e i g h t c h a r g e s n e e d no t b e d e d u c t e d f r om t h e c o n t r a c t e d FOB v a l u e . Howev e r , s u c h ben e f i t s h a l l b e l im i t e d t o on l y 3% of the shipments in a Financial Year. 3 . Procedure: The e x p o r t e r s h o u l d d e c l a r e t h e f a c t o f e x i g e n c y up f r o n t t o t h e AC /DC b e f o r e f i l i n g t h e s h i p p i n g b i l l s . The AC /DC s h o u l d s a t i s f y h im s e l f a b o u t t h e bon a f i d e s o f t h e c l a im . I n c a s e o f

d i s p u t e , t h e d r awb a c k s h a l l b e r e l e a s ed a f t e r deduc t i n g a i r f r e i gh t . W .e.f. 1.04.2009, P r o c e d u r e f o r r e f u n d o f impo r t du t y i n c a s e o f d e f e c t i v e good s [CEA S.26A] The r e d u c e d P en a l t y o f 25% u / s 11AC s h a l l a p p l y on l y i f t h e du t y , i n t e r e s t a n d t h e p e n a l t y o f 25% i s p a i d wi t h i n 30 d a y s a f t e r t h e c ommun i c a t i o n o f t h e o r d e r by t h e a d j u d i c a t i n g a u t h o r i t y a n d no t t h e Appe l l a t e Au t h o r i t y [Circular No.898/18/09 dated 15.09.2009] Depo s i t o f e x c e s s du t y / t a x c o l l e c t e d [CEA S.11D, CUA S.28B, ST(F S.73A] A) Pa ymen t o f i n t e r e s t on du t y d emand e d . [CEA S.11AB, CUA S.28AB(1), ST (F S.75] A) P r o c e d u r e s t o b e a d o p t e d f o r c l a im o f r e f u n d . [CEA S. 11B, CUA S.27] SEARCH, SEIZURE AND CONFISCATION Return of Records [Rule 24A of CE Rules] [Notification No.17/2009 dt. 07.07.2009]: ( a ) The book s o f a c c o u n t s o r o t h e r do c umen t s , s e i z e d by t h e Cen t r a l Exc i s e Of f i c e r o r p r o d u c e d by a n a s s e s s e e o r any o t h e r p e r s o n , wh i c h h a v e no t b e e n r e l i e d on f o r t h e i s s u e o f no t i c e

s h a l l b e r e t u r n e d wi t h i n 30 d a y s o f the i s sue of sa id no t i c e o r wi t h i n 30 d a y s f r om t h e d a t e o f exp i r y o f t h e pe r i od f o r i s s u e o f no t i c e . ( b ) Retention of books: CCE may o r d e r f o r r e t e n t i o n o f s u c h book s o f a c c o u n t s o r do c umen t s , f o r r e a s o n s t o b e r e c o r d e d i n wr i t i n g a n d t h e CEO s h a l l i n t ima t e t o t h e a s s e s s e e o r s u ch pe r s on abou t such r e t en t i on . Powe r t o s ummon p e r s o n s t o g i v e e v i d e n c e a n d p r o d u c e do c umen t s . [Sec.108 of CUA] OFFENCES, P ROSECUTIONS AND P ENAL TIES W .e.f. 01.04.2009, P e r s o n s i n e l i g i b l e f o r c ompound i n g o f o f f e n c e s a r e s p e c i f i e d u / s [S.9A of CEA, S.137 of CUA] Se r v i c e Ta x Pub l i c a t i o n o f Name s Ru l e s , 2008 P r o v i s i o n a l a t t a c hmen t o f P r o p e r t y i f ad j ud i c a t i o n i s pend i ng . P rov i s i o n s r e l a t i n g t o pena l t y payab l e u / s . 11 4AA a n d 11 7 . AP PEALS AND R ISIONS EV W .e.f. 01.09.2009, Th e Commi s s i o n e r o f Cen t r a l Ex c i s e c a n on l y r e v i ew t h e o r d e r p a s s e d by a n y Subo r d i n a t e Au t h o r i t y

wi t h i n 3 mon t h s o f p a s s i n g t h e o r d e r a n d d i r e c t t h e CCE t o mak e a n a p p l i c a t i o n t o t h e CCE (A ) wi t h i n 1 mon t h o f s u c h r e v i ew by CCE . W .r.e.f. 01.07.2003, The Hig h Cou r t may a dm i t a n a p p e a l a f t e r t h e e x p i r y o f 180 d a y s i f t h e r e wa s s u f f i c i e n t c a u s e f o r no t f i l i n g wi t h i n t h e s p e c i f i e d p e r i o d . [CUA S.130] I n t e r e s t on r e f u n d o f p r e d e p o s i t u / s 35 F . [CEA 35FF, CUA 129EE, F 83] A Re f e r e n c e t o J u r i s d i c t i o n a l CEO Powe r s o f r e v i ew a n d d i r e c t i o n und e r CEA S.35B & 35E, CUA S.129D. LIST OF LA TEST CASELA WS 1. CENTRAL EXCISE 1.1 B ASICS Case Gist Citation C i r c u l a r s o f Boa r d c a n n o t p r e v a i l ov e r l aw l a i d down by Apex Cou r t . Cou r t s c anno t d i r e c t t h a t c i r c u l a r s s hou l d be g i v en e f f e c t t o when a c o n t r a r y d e c i s i o n i s e x p r e s s e d by a Sup r eme Cou r t / High Cou r t Dec i s i o n . Commi s s i o n e r o f Cen t r a l Exc i s e , Mumba i v s . Hindoo s t a n Sp i n n i n g a n d Weav i n g Mi l l s L t d . 2009 ( SC )

Circulars Only Prospective Effect: CBEC s C i r c u l a r c a n on l y h a v e p r o s p e c t i v e effec t , e s p e c i a l l y when t h e wo r d Henceforth had been u s ed i n t h e Ci r cu l a r . J a i F i b r e s L t d ( SC ) 218 ELT 484 Circular cannot amend Notification: By i s s u i n g a Ci r cu l a r s ub s equen t t o a No t i f i c a t i o n , t h e Dep a r tme n t c a n n o t a d d n ew c o n d i t i o n t o t h e No t i f i c a t i o n , t h e r e b y r e s t r i c t i n g t h e s cope o f Exemp t i o n No t i f i c a t i o n . I n t e r Con t i n e n t a l ( I n d i a ) ( 2 0 0 8 ) 226 ELT 16 C i r c u l a r s i s s u e d by CBEC c a n n o t b e g i v e n p r ima c y ov e r t h e d e c i s i o n s o f t h e Cou r t . Bo l p u r v Ra t a n Me l t i n g & Wi r e I n d u s t r i e s 2008 ( 1 2 ) STR 416 Activity beyond scope / power conferred: Gov e r nmen t i s no t bound by a n y a c t s o f any o f i t s o f f i c e r s , who e x e r c i s e d s t a t u t o r y powe r , wh i c h wa s no t c o n f e r r e d upon h im . Su c h a c t i o n o f t h e Of f i c e r i s a nu l l i t y . Manag emen t , As s t . S a l t Commr . Vs . S e c y . Cen t r a l S a l t

Mazdoo r Un i o n ( 2 0 0 8 ) 224 ELT 14 ( SC ) 1.2 LEVY Case Gist Citation Add i t i o n o f s t a b i l i z i n g a g e n t , mak i n g a g e n t e t c . do e s no t amoun t t o manu f a c t u r e wi t h i n mean i n g o f Se c t i o n 2 ( f ) o f Cen t r a l Exc i s e Ac t , 1944 . CCE v s . Ka r am Chand 2009 ( 2 3 6 ) ELT 647 (H . P ) Pu r c h a s e o f CKD c ompon e n t s f r om s u p p l i e r a n d i n s t a l l a t i o n o f t h e s ame i n c l i e n t s p r em i s e s do e s no t amoun t t o manu f a c t u r e a n d t h u s no l e v y wa s a t t r a c t e d . CCE v s . B l ow Pa s t L t d . 2009 ( 2 3 6 ) ELT 631 (D e l . ) Manufacture: The wo r d s Manu f a c t u r e a n d Manu f a c t u r i n g p r o c e s s h a v e d i f f e r e n t mean i n g s i n d i f f e r e n t s t a t u t e s . De f i n i t i o n o f man u f a c t u r i n g p r o c e s s i n on e s t a t u t e c anno t be app l i e d t o ano t h e r s t a t u t e . Note: This decision is given w.r.t. a dispute in ESI Act. Qaz i Noo r u l H .H .H . Pe t r o l Pumpv . DY. Di r e c t o r , ES I Co r p 2009 ( 2 4 0 ) ELT 481 ( SC )

Excisability: Exc i s e du t y i s no t c o n c e r n e d wi t h owne r s h i p o r s a l e . L i a b i l i t y und e r Exc i s e Law i s e v e n t b a s e d (man u f a c t u r e ) a n d i r r e s p e c t i v e o f whe t h e r good s a r e s o l d o r c a p t i v e l y c o n s umed . Mor i r o k u UT I n d i a P L t d v s . S t a t e o f UP 2008 ( 2 2 4 ) ELT 365 ( SC ) Branch Transfer Proof of Marketability: Me r e t r a n s f e r o f a good by a n a s s e s s e e f r om its f a c t o r y t o i t s a n o t h e r un i t f o r manu f a c t u r e o f f i n a l p r o d u c t do e s no t s h ow t h a t t h e p r o d u c t wa s e i t h e r ma r k e t e d o r wa s ma r k e t a b l e . CIPLA L t d 2008 ( 2 2 5 ) ELT 403 ( SC ) Deemed Manufacture: Lab e l i n g o r r e l a b e l i n g wi t h o u t r e p a c k i n g f r om bu l k t o r e t a i l amoun t s t o d e emed manu f a c t u r e . BOC ( I ) L t d ( 2 0 0 8 ) 226 ELT 323 ( SC ) The p r o c e s s o f sw a g i n g ( i . e . b e n d i n g ) b y wh i c h t h e s h a p e o f me t a l ba r s o r t u b e s a r e changed f o r j o i n ing o r f a s t en ing o r o the r f u n c t i o n s amoun t s t o manu f a c t u r e a n d h e n c e a t t r a c t s Exc i s e Du t y . P r a c h i I n d u s t r i e s ( 2 2 5 ) ELT

16 ( SC ) P r o c e s s i n g o f c a s h ewnu t s , p e a n u t s , p i s t a a n d a lmond s a n d p a c k i n g a n d c l e a r a n c e und e r b r a n d n ame a r e a c t i v i t i e s amoun t i n g t o manu f a c t u r e , & l i a b l e t o Exc i s e Du t y . SKB Dry f r u i t s Mar k e t i n g Co . Pv t . L t d . 2008 ( 2 2 4 ) ELT 339 ( S .C . ) Cu t t i n g a n d S l i t t i n g o f s t e e l s h e e t s a n d po l y e s t e r f i lm s u s e d f o r l am i n a t i o n pu r p o s e s do no t amoun t t o manu f a c t u r e . Ra j p u r o h i t GMP I n d i a L t d . & Or s . ( SC ) CA J o u r n a l Dec 08 Pg 1001 I n t e rmed i a t e good s p r o d u c e d a n d u s e d f o r c a p t i v e c o n s ump t i o n a r e not liable to duty if not marketable, e v e n i f t h e y a r e s p e c i f i e d i n t h e Ta r i f f Sc h e d u l e . Whi t e Mach i n e s ( 2 0 0 8 ) 224 ELT 224 ELT ( SC ) Case Gist Citation Was t e a r i s i n g f r om manu f a c t u r i n g p r o c e s s on l y i s du t i a b l e . Ban swa r a Syn t e x L t d ( 2 0 0 8 ) 221 ELT 360 (R a j . ) T r a n sm i s s i o n a p p a r a t u s / e q u i pmen t s i n s t a l l e d i n a Ba s e T r a n s Re c e i v e r S t a t i o n (BTS ) o r Ba s e

S t a t i o n Con t r o l l e r (BSC ) Room r e s u l t s i n a n ew p r o d u c t . Howev e r , s u c h BTS / BSC s i t e e r e c t e d , i n s t a l l e d a n d c omm i s s i o n e d by con t r a c t o r s c anno t be con s t r u ed a s Mar k e t a b l e Good s , a s t h e y a r e emb ed d e d i n e a r t h / bu i l d i n g a n d c a n n o t b e s h i f t e d wi t h o u t d amag e . New p r o d u c t (BTS / BCS ) wi l l no t b e movab l e , & h e n c e no t e x c i s a b l e . Hu t c h i s o n Max Te l e c om ( P ) L t d 224 ELT 191 (B om . ) Eve n i f a n a r t i c l e i s men t i o n e d i n Ta r i f f t h e r e i s no l i a b i l i t y o f du t y un l e s s i t i s manu f a c t u r e d . Gu r d a s p u r Di s t i l l e r y ( 2 0 0 8 ) 224 ELT 337 ( SC ) Job W orker When not manufacturer? Some t ime s Manu f a c t u r i n g a c t i v i t y , may g e t c omp l e t e d a t t h e t im e o f c l e a r a n c e o f good s f r om t h e p r em i s e s o f t h e P r i n c i p a l Manu f a c t u r e r , a n d no t a t t h e t im e o f c l e a r a n c e f r om t h e p r em i s e s o f t h e J o b Wo r k e r . Th i s i s b e c a u s e ac t i v i t i e s such a s de f l a sh ing , t e s t i ng , i n spec t i on , e t c . a r e b e i n g und e r t a k e n by t h e P r ima r y Manu f a c t u r e r , a n d good s we r e r e a d y f o r ma r k e t i n g on l y a f t e r t h e s e p r o c e s s e s we r e c omp l e t e d . I n such ca s e s , t h e Job

Work e r i s no t c o n s i d e r e d a s Manu f a c t u r e r . Sun c o Rubb e r s L t d 2008 ( 2 2 8 ) ELT 27 (Mad . ) 1.3 CLASSIFICA TION Case Gist Citation Common P a r l a n c e t e s t i s on e o f t h e d e t e rm i n a t i v e t e s t s f o r c l a s s i f i c a t i o n o f a p r o d u c t whe t h e r med i c amen t o r c o sme t i c . A p r o d u c t b e i n g a t o o t h powd e r a n d t h e r e b e i n g no c h a n g e i n n a t u r e , cha r a c t e r and u s e s o f t h e s a i d p r oduc t , i t ha s t o be a c o sme t i c / t o i l e t r y p r e p a r a t i o n a n d no t a med i c amen t . Commi s s i o n e r o f Cen t r a l Exc i s e v s . Ba i d y a n a t h Ayu r v e d Bhawan L t d . 2009 ( SC ) Parts and Accessories: Name P l a t e s , Emb l ems a n d Logo s o f P l a s t i c s a r e no t c lass i f i ab le as Pa r t s a n d Acc e s s o r i e s o f mo t o r v e h i c l e s . P r a g a t i S i l i c o n e s Pv t . L t d . 2009 ( 2 4 0 ) ELT A117 ( SC ) Common Parlance Test Common P a r l a n c e Te s t i s no t a p p l i c a b l e j u s t b e c a u s e t h e p roduc t i s

manu f a c t u r e d e x c l u s i v e l y a s p e r t h e med i c i n a l f o rmu l a e d e s c r i b e d on Ayu r v e d i c Sy s t em o f t r e a tmen t . De f i n i t i o n o f on e s t a t u t e h a v i n g d i f f e r e n t ob j e c t , pu r p o s e a n d s c h eme c a n n o t b e a p p l i e d mech a n i c a l l y t o a n o t h e r s ta tu te . Sh r e e Ba i d y a n a t h Ayu r v e d Bhawan L t d . [ 2 0 0 9 ] ( 2 3 7 ) ELT 225 ( SC ) No assumption if statute is clear: No s c o p e f o r c o u r t t o und e r t a k e e x e r c i s e t o r e a d s ome t h i n g i n t o p r o v i s i o n s wh i c h t h e l e g i s l a t u r e i n i t s wi s d om consciously omitted. Cou r t c a n n o t c o r r e c t o r mak e a s s umed d e f i c i e n c y when wo r d s a r e c l e a r a n d un amb i g u o u s . Cou r t s t o d e c i d e wha t t h e l aw i s a n d no t wha t i t s hou l d be . Pa rme s hwa r a n Sub r aman i ( 2 0 0 9 ) 242 ELT 162 ( SC ) No Rules if Section and Chapter notes are clear: I t i s t he i n t en t i on of ru l e t o c l a s s i f y good s und e r h e a d i n g wh i c h p r o v i d e s mos t s p e c i f i c t h an gene r a l de s c r i p t i o n . I n t e r p r e t a t i v e Ru l e s no t

a p p l i c a b l e when Se c t i o n a n d Chap t e r No t e s p r o v i d e c l a r i t y on c l a s s i f i ca t i on . Champd a n y I n d u s t r i e s L t d . ( 2 0 0 9 ) 241 ELT 481 ( SC ) When e n t r i e s i n HSN a n d Ta r i f f a r e no t a l i g n e d , r e l i a n c e c a n n o t b e p l a c e d on HSN f o r pu r p o s e s o f c l a s s i f i c a t i o n o f good s und e r Ta r i f f . En t r i e s und e r HSN a n d e n t r i e s und e r Ta r i f f Sc h e d u l e a r e c omp l e t e l y d i f f e r e n t . Cam l i n L t d 2008 ( 2 3 0 ) ELT 193 ( SC ) Use of Goods: Ma rk e r i n k c l a s s i f i a b l e on l y i n t h e t a r i f f e n t r y r e l e v a n t f o r Mar k e r P en s . Mar k e r i n k s a r e d i f f e r e n t f r om o t h e r wr i t i n g i n k s (w a t e r b a s e d ) , wh i c h c a n b e u s e d f o r o t h e r p r o d u c t s a s we l l . Cam l i n L t d 2008 ( 2 3 0 ) ELT 193 ( SC ) Processed / Seasoned Nuts Classification HSN Explanation: P r o c e s s e d c a s h ewnu t s , p e a n u t s , a lmond s , e t c manu f a c t u r e d by d ry roa s t i ng , o i l roa s ing , sa l t i ng wou l d b e c l a s s i f i a b l e und e r Chap t e r 20 (A lmond s , Nu t s d r y r o a s t e d , o i l r o a s t e d ) a n d no t und e r Chap t e r 8 (Ed i b l e F ru i t and

Nu t s ) , s i n c e HSN Exp l a n a t o r y no t e s t o Chap t e r 20 c a t e g o r i c a l l y s t a t e s t h a t i t s p roduc t s a r e exc l ud ed f r om Chap t e r 8 . Ph i l Co r p o r a t i o n L t d 2008 ( 2 2 3 ) ELT 9 ( SC ) Classification Principle: Ba s i c c h a r a c t e r , f u n c t i o n a n d u s e a r e mo r e impo r t a n t t h a n t h e n ame u s e d i n c ommon t r a d e p a r l a n c e . Th e r u l e s o f i n t e r p r e t a t i o n o f Ta r i f f i s a p p l i c a b l e on l y i f d e t e rm i n a t i o n o f c l a s s i f i c a t i o n a c c o r d i n g t o t h e t e rm s o f Head i n g s a n d r e l a t i v e Se c t i o n / Chap t e r No t e s i s no t po s s i b l e . I n t e r n a t i o n a l Tob a c c o Co . L t d 2008 ( 2 3 1 ) ELT 207 ( SC ) Mer e l y b e c a u s e a p r o d u c t c o u l d b e u s e d f o r c o sme t i c pu r p o s e wou l d no t mak e t h e p roduc t a c o sme t i c p r o d u c t . I s h a a n Re s e a r c h Lab ( P ) L t d . 230 ELT 7 ( SC ) Case Gist Citation Ru l e s o f I n t e r p r e t a t i o n c a n n o t b e app l i e d f o r i n t e r p r e t a t i o n o f e x emp t i o n no t i f i c a t i o n . I n t e r p r e t a t i o n o f t a r i f f d i f f e r e n t f r om i n t e r p r e t a t i o n o f e x emp t i o n

no t i f i c a t i o n . Exemp t i o n no t i f i c a t i o n t o be i n t e r p r e t e d i n t e rm s o f i t s l a n g u a g e . When l a n g u a g e i s p l a i n a n d c l e a r , e f f e c t mus t b e g i v e n t o i t . Mewa r Ba r t a n Ni rma l Udyog 2008 ( 2 3 1 ) ELT 274 ( SC ) Hairdye vs. Lotion: Whi l e i n a g e n e r i c s e n s e , a h a i r dy e may a l s o b e r e f e r r e d t o a s ha i r l o t i on , f o r pu r p o s e s o f t a x i n g s t a t u t e , i t s c h em i c a l c ompo s i t i o n a n d a c t u a l u s a g e b e c ome s r e l e v a n t . God r e j I n d u s t r i e s L t d 2008 ( 2 2 8 ) ELT 321 ( SC ) Classification of Connector with Wire: Conn e c t o r s wi t h wi r e i s known on l y a s connec t o r s and a r e no t t r e a t e d a s wi r e s o r c a b l e s . The r e f o r e , c o n n e c t o r s wi t h wi r e s h o u l d b e c l a s s i f i e d und e r Head i n g 8536 . 9 0 , a n d no t und e r 85 . 4 4 ( i n s u l a t e d wi r e , c a b l e a n d o t h e r i n s u l a t e d c o n du c t o r ) . Un i c o n Conn e c t o r s P L t d ( 2 0 0 8 ) 232 ELT 205 ( T r i . LB ) Good s impo r t e d i n CKD c o n d i t i o n : Ru l e 2 ( a ) o f Ru l e s f o r I n t e r p r e t a t i o n o f Ta r i f f a p p l i c a b l e on l y

i f a l l c ompon e n t s i n t e n d e d t o mak e a f i n a l p r oduc t a r e p r e s en t e d a t t h e s ame t im e f o r Cu s t oms c l e a r a n c e . When impo r t e d good s p r e s e n t e d un a s s emb l e d / d i s a s s emb l e d c a n b e pu t t o g e t h e r by mean s o f a s imp l e f i x i n g d e v i c e o r by r i v e t i n g o r we l d i n g . Good s r e q u i r i n g c omp l i c a t e d p r o c e s s t o mak e i n t o t h e f i n a l p r o d u c t , c a n n o t b e con s i d e r ed a s un f i n i s h e d good s h a v i n g e s s e n t i a l c h a r a c t e r o f c omp l e t e a r t i c l e s . So , c ompon e n t s o f Co l o u r Te l e v i s i o n s impo r t e d c a n n o t b e c o n s i d e r e d a s CTV impo r t e d i n CKD . Sony I n d i a L t d 2008 ( 2 3 1 ) ELT 385 ( SC ) A p a r t i s a n e s s e n t i a l c ompon e n t o f t h e who l e wi t h o u t wh i c h t h e who l e c anno t f u n c t i o n whe r e a s a c c e s s o r y i s s u p p l emen t a r y o r s u b o r d i n a t e i n n a t u r e a n d n e e d no t b e e s s en t i a l f o r a c t u a l f un c t i on i ng o f t h e p roduc t . Ra i l a s s emb l y , f r o n t s e a t a d j u s t e r / a s s emb l y s l i d e r a n d r e a r b a c k l o c k a s s emb l y a r e no t p a r t s o f s e a t s bu t a r e a c c e s s o r i e s t o mo t o r veh i c l e .

I n su l a t i on Elec t r i c a l (P ) Ltd . 2008 ( 2 2 4 ) ELT 512 ( SC ) Seating Capacity for Classification: The s e a t i n g capac i t y r e l evan t f o r c l a s s i f i c a t i on i s the c a p a c i t y f o r wh i c h RC h a s b e e n g i v e n a n d no t t h e op i n i o n o f t h e manu f a c t u r e r . T .N . v s Vi n a y a g a Body Bu i l d i n g I n d u s . L t d . ( 2 0 0 8 ) 224 ELT 3 ( SC ) E r r o n e o u s c l a im mad e by t h e a s s e s s e e e a r l i e r d i d no t p r e c l u d e h im f r om s u b s e q u e n t l y mak i n g a c l a im f o r c o r r e c t c l a s s i f i c a t i o n . Gu l j a g I n d u s t r i e s L t d ( 2 0 0 8 ) 224 ELT 38 (R a j . ) The d e f i n i t i o n a s p e r I n t e r n e t s o u r c e s l i k e Wik i p e d i a c a n n o t b e u s e d f o r t h e pu r p o s e o f i n t e r p r e t i n g a t ax ing s t a t u t e o r c l a s s i f i c a t i on o f a p roduc t . Pond s I n d i a L t d ( 2 0 0 8 ) 227 ELT 497 ( SC ) When good s a r e c l a s s i f i a b l e und e r tw o c h a p t e r h e a d i n g s o f Ta r i f f s imu l t a n e o u s l y , t h e b e n e f i t s h o u l d be g iven t o t h e a s s e s s e e . Ca l c u t t a Sp r i n g s L t d . ( 2 0 0 8 ) 229 ELT 161 ( SC )

1.4 V ALUATION Case Gist Citation Repair and Maintenance Charges: As s e s s e e s a r e en t i t l e d t o deduc t i o n s f o r r e p a i r & ma i n t e n a n c e a n d r e n t a l c h a r g e s f o r PMX mach i n e f r om t h e a s s e s s a b l e v a l u e . Dh i l l o n Koo l Dr i n k s & Bev e r a g e s 2009 ( 2 3 8 ) ELT A26 ( SC ) Amoun t s c o l l e c t e d und e r d i f f e r e n t head s v i z . , pack ing cha rg e s , f a c i l i t y cha rge s , r en t a l cha rge s , e t c . r e c o v e r e d f r om buy e r s f o r p rov id i ng cy l i nde r s , t onne r s , c a n i s t e r s , e t c . , wh i l e s u p p l y i n g g a s , no t t o b e i n c l u d e d i n a s s e s s a b l e va lue . [Note: The provisions of Sections 3 (charging section) and 4 (valuation) are independent and section 4 cannot be considered as subject to Section 3. Hence, any item fitted to an excisable good would be liable for excise duty even if it is not excisable, provided conditions of Section 4 is satisfied] Gr a s im I n d u s t r i e s L t d . 2009 ( 2 4 1 ) ELT 321 ( SC )

Trade discount deductible: I f t h e r e i s no f l owb a c k / r e t u r n o f t r a d e d i s c o u n t , a s s e s s e e en t i t l ed t o c l a im d e d u c t i o n . Machine Charges owned by another Co. excluded: Vend i n g mach i n e i n s t a l l e d b y ho l d i n g c ompany bu t own e r s h i p o f v e n d i n g mach i n e v e s t e d i n ma r k e t i n g c ompan y . Mach i n e c h a r g e s p a y a b l e t o ma r k e t i n g c ompany a n d no t t o ho l d i n g c ompan y , t h u s t h e c h a r g e s a r e no t i n c l u d a b l e i n AV. Pe p s i c o I n d i a Ho l d i n g s (P ) l t d . ( 2 0 0 9 ) 234 ELT 385 ( SC ) Recovery of Transport charges at fixed rate not includible in A Fo r goo d s s u p p l i e d by V: a s s e s s e e t o S t a t e E l e c t r i c i t y Boa r d s , tw o s e p a r a t e c o n t r a c t s we r e e n t e r e d i n t o f o r s a l e o f me t e r s and f o r t r a n spo r t a t i o n and t r a n s i t i n s u r a n c e . Though s u c h Cha r g e s f o r t r a n s p o r t a t i o n o f good s we r e no t on a c t u a l b a s i s , i t s h a l l no t b e i n c l u d e d i n t h e As s e s s a b l e Va l u e . Accu r a t e Me t e r s L t d . ( 2 0 0 9 ) 235 ELT 581 ( SC ) Case Gist Citation

Interest inclusion not deductible if not established: As s e s s e e i s no t e n t i t l e d t o c l a im d e d u c t i o n o f a n y i n t e r e s t on r e c e i v a b l e s f r om t h e s a l e p r i c e f o r d e t e rm i n i n g As s e s s a b l e Va l u e i f t h e a s s e s s e e had f a i l e d t o e s t a b l i s h t h a t p r i c e c h a r g e d on good s s o l d t o c u s t ome r s on c r e d i t b a s i s c o n t a i n e d a n e l emen t o f i n t e r e s t i n bu i l t t h e r e i n a s a p r e c o n d i t i o n t o sa le . Ca s t r o l I n d i a L t d . 2009 ( 2 3 6 ) ELT A89 ( SC ) T r a n s p o r t a t i o n Cha r g e s f o r t r a n s p o r t o f good s f r om t h e f a c t o r y t o t h e s i t e f o r e r e c t i o n and i n s t a l l a t i o n i s no t r e q u i r e d t o b e i n c l u d e d i n t h e As s e s s a b l e Va l u e o f t h e good s . B l u e S t a r L t d 2008 ( 2 2 5 ) ELT A129 ( SC ) Inclusion of drawings, designs: The c h a r g e s f o r d r aw i n g s , d e s i g n s e t c . h a v e t o b e added t o t h e a s s e s s a b l e v a l u e o f t h e mach i n e s manu f a c t u r e , b a s e d on u s e o f s u c h d r aw i n g s , d e s i g n s , j i g s , f i x t u r e s , t o o l i n g e t c . Howev e r , b e f o r e a d d i n g t h e v a l u e o f d r aw i n g s e t c , i t has t o be e s t ab l i s hed t h a t

t h e c o n s i d e r a t i o n h a d a n e x u s wi t h t h e nego t i a t e d p r i c e o f t h e a s s e s s ab l e good s und e r c l e a r a n c e . Myso r e Ki r l o s k a r L t d , ( 2 0 0 8 ) 226 E .L . T . 161 ( S .C . ) Inspection Charges: I n s p e c t i o n c h a r g e s p a i d by t h e manu f a c t u r e r t o a n y t h i r d p a r t y i n add i t i o n t o no rma l i n s p e c t i o n wou l d b e i n c l u d i b l e i n a s s e s s ab l e va lue . Sou t h e r n S t r u c t u r a l s L t d 2008 ( 2 2 9 ) ELT 487 ( SC ) I n o r d e r t o c l a im T r a d e Di s c o u n t a s a n a l l owab l e d e d u c t i o n u / s 4 , i t s h o u l d b e known o r qu a n t i f i a b l e a t t h e t im e o f r emov a l bu t c a n b e qu a n t i f i e d l a t e r on . Mahav i r Sp i n n i n g Mi l l s 2008 ( 2 2 5 ) ELT A129 Valuation of Physicians Samples: Phy s i c i a n s s amp l e s a r e no t s o l d bu t c l e a r e d exc lu s i v e l y f o r f r e e d i s t r i b u t i o n f o r t h e pu r p o s e o f a d v e r t i s emen t . Th e s e s h o u l d b e v a l u e d i n t e rm s o f Se c t i o n 4 ( 1 ) ( b ) a n d no t i n t e rm s o f Se c t i o n 4A . I n d i a n Drug Manu f a c t u r e r s As s o c i a t i o n ( 2 0 0 8 ) 222 ELT 22 (B om )

M P Charges Not Part of A Min imum Ta k e TO V: o r Pa y (MTOP ) Cha r g e s p a y a b l e by buy e r when h e f a i l s t o t a k e min imum qu a n t i t y o f e x c i s a b l e good s a s s u r e d i s no t add i t i o n a l con s i d e r a t i o n and t h e r e f o r e no t i n c l u d i b l e i n As s e s s a b l e Va l u e . P r a x a i r I n d i a L t d 2008 ( 2 2 3 ) ELT 596 (CESTAT Che . ) Sale to Federation /Association: When l e t t e r s f r om t h e Fe d e r a t i o n / As s o c i a t i o n ev idence s t h a t i n c a s e o f s a l e t o membe r s o f a Fe d e r a t i o n , p r i c e i s no t t h e s o l d c o n s i d e r a t i o n . Hen c e , r e v e n u e i s c o r r e c t i n t a k i n g t h e p r i c e t o non membe r s a s t h e c omme r c i a l p r i c e f o r v a l u i n g s a l e s t o membe r s . Ki s a n Sa hk a r i Ch i n i Mi l l s L t d 2008 ( 2 2 5 ) ELT A96 Inclusion in Depot Sale Price: Depo t S a l e Pr i c e a f f i xed i s t h e so l e con s i d e r a t i o n f o r s a l e a t t h e Depo t i r r e s p e c t i v e o f t h e f a c t t h a t f r e e g i f t s a r e o f f e r e d by t h e As s e s s e e . Co s t / Va l u e o f f r e e g i f t s o f f e r e d a t t h e Depo t c a n n o t b e r e d u c e d f r om t h e v a l u e f o r t h e pu r p o s e o f d e t e rm i n i n g a s s e s s a b l e va lue .

Sony I n d i a L t d 2008 ( 2 2 9 ) ELT A127 Value of Captive Consumption: The a s s e s s a b l e v a l u e o f t h e c a p t i v e l y c o n s umed g r e y y a r n wou l d b e on t h e b a s i s o f t h e p r i c e a t wh i c h t h e g r e y y a r n wa s s o l d by t h e a s s e s s e e t o un r e l a t e d buy e r s i n who l e s a l e a t t h e f a c t o r y g a t e . Sc a n Syn t h e t i c s L t d . 2008 ( 2 2 4 ) ELT 12 ( SC ) Carton Packages containing Individual Units: When p r o d u c t s a r e p a c k e d i n a c a r t o n keep i ng i n v i ew t h e qu a n t i t y (w e i g h t ) c o n t a i n e d t h e r e i n , t h e s ame c a n n o t b e s a i d t o b e f o r r e t a i l s a l e . Hen c e , s u ch c a r t on c anno t be con s i d e r e d a s a mu l t i p i e c e p a c k a g e f o r a p p l i c a t i o n o f Se c t i o n 4A . The r e f o r e , c a r t o n box e s c o n t a i n i n g 500 Sa c h e t s o f Sh ampoo c a n n o t b e c o n s i d e r e d a s Mu l t i P i e c e Pa c k a g e f o r re ta i l sa le . Kr a f t e c h P r o d u c t s 2008 ( 2 2 4 ) ELT 504 ( SC ) Sale to Related Parties: When t h e go od s a r e so ld t o r e l a t ed pa r t i e s a t a p r i c e wh i c h i s no t

i n f l u e n c e d by t h e r e l a t e d p a r t y r e l a t i on sh ip , t h en t h e t r an sac t i on va l u e s hou l d be t a k en a s t h e a s s e s s ab l e va lue . Bha r t i Te l e c om L t d . ( 2 0 0 8 ) 226 ELT 3 ( SC ) Undervaluation: The r e i s no c a s e o f und e r v a l u a t i o n o f good s when good s a re so ld t o r e l a t ed p a r t i e s a t o r a b o u t t h e s ame p r i c e a t wh i c h t h e y a r e s o l d t o t h i r d p a r t i e s . I n d i a Th e rm i t Co r p o r a t i o n L t d . ( 2 0 0 8 ) 226 ELT 164 ( SC ) Additional Consideration: The Dep a r tmen t s hou l d e s t ab l i s h t h a t add i t i o n a l con s i d e r a t i o n had a c o n n e c t i o n wi t h t h e n e g o t i a t e d p r i c e o f a s s e s s a b l e good s und e r c l e a r a n c e i n o rde r t o t ax t h e add i t i o n a l con s i d e r a t i o n . Myso r e Ki r l o s k a r L t d . ( 2 0 0 8 ) 226 ELT 161 ( SC ) Not assessable under M P: P a c k a g e R c o n t a i n i n g 100 p i e c e s o f c h o c o l a t e s i n wh i c h t h e i n d i v i d u a l p i e c e s do no t a t t r a c t a s s e s smen t u / s 4A o f CEA , 1944 . Cen t r a l Ar e c a n u t & Coco a Mar k e t i n g & P r o c e s s i n g Co op L t d [ 2 0 0 8 ] 232 ELT 107

( SC ) 1.5 CENTRAL EXCISE P ROCEDURES Case Gist Citation 100% EOU Eligible for Input credit: 100% EOUs a r e e n t i t l e d t o t a k e Cenv a t c r e d i t o f du t y on i n p u t s p r o c u r e d i n d i g e n o u s l y a n d when t h e y we r e no t i n a po s i t i o n t o u t i l i z e t h e s ame , t h e y a r e e n t i t l e d t o r e f u n d und e r Ru l e 5 o f Cenv a t Cr e d i t Ru l e s , 2004 . ANZ I n t e r n a t i o n a l 2009 ( 2 4 0 ) ELT A16 ( SC ) Interpretation of exemption notification: Exemp t i o n no t i f i c a t i o n s h o u l d b e r e a d l i teral ly. No t i f i c a t i o n l i k e s t a t u t e mus t b e c o n s t r u e d h a v i n g r e g a r d t o pu r p o s e a n d ob j e c t i t s e e k s t o ach i eve . Ma lwa I n d u s t r i e s L t d . ( 2 0 0 9 ) 235 ELT 214 ( SC ) No SSI Exemption Others brand name: Af f i x i n g t h e S t i c k e r s wi t h wo r d s UTS a n d TSN on t h e e x c i s a b l e good s wou l d b e t r e a t e d a s a f f i x i n g o t h e r p e r s o n s b r a n d n ame a n d s o e x emp t i o n f o r SS I no t a p p l i c a b l e . Un i s o n E l e c t r o n i c s Pv t . L t d . ( 2 0 0 9 ) 235 ELT 206 ( SC )

Common Control: P r o d u c t i o n o f t h e a s s e s s e e a r t i f i c i a l l y s p l i t up i n t o 3 un i t s bu t t h e 3 un i t s c o n t i n u e d t o f u n c t i o n und e r t h e con t r o l and s upe r v i s i on o f t h e Di r e c t o r s o f on e c ompany a n d a l l t h e r aw ma t e r i a l s i n c l u d i n g t h e i r b r a n d n ame l a b e l s we r e b e i n g s u p p l i e d by i t a n d a l l 3 un i t s h a d c ommon d e s i g n e r . Thu s , t h e i r c l e a r a n c e s we r e l i a b l e t o b e c l u b b e d . Diwan Sa h e b F a s h i o n s Pv t . L t d . 2009 ( 2 3 7 ) ELT A104 ( SC ) Change in ownership Transferee liable: He l d t h a t c h a n g e i n own e r s h i p o f und e r t a k i n g wou l d no t a f f e c t ob l i g a t i o n o f t h e p e r s o n l i a b l e t o p a y du t y . I f d e f a u l t e r h a d s o l d und e r t a k i n g , t h e t r a n s f e r e e wou l d b e l i a b l e f o r e x c i s e du t y t h a t r ema i n e d ou t s t a n d i n g a s on t h e d a t e o f t r ans fe r . Subu r b a n P l y & P an e l s ( P ) L t d . 2009 ( 2 3 8 ) ELT A54 ( SC ) Exemp t i o n f r om e x c i s e du t y a l o n e und e r a no t i f i c a t i o n c a n n o t b e e x t e n d e d t o p a ymen t o f c e s s l e v i a b l e und e r t h e F i n a n c e Ac t .

I n d o Fa rm T r a c t o r s & Mo to r s L t d v s . UOI 2008 ( 2 2 2 ) ELT 184 (HP ) No t i f i c a t i o n g r a n t i n g e x emp t i o n s t i p u l a t e s t h a t CENVAT Cr e d i t no t t o be t a k en i n f a c t o r y . I t c anno t b e i n f e r r e d t o p r e c l u d e t h e As s e s s e e f r om t a k i n g CENVAT Cr e d i t i n a d i f f e r en t f a c t o r y , even i f he manu f a c t u r e s t h e s ame p r o d u c t . I n n o v a t i v e Te c k P a c k L t d 2008 ( 2 2 4 ) ELT 340 ( SC ) New c o n d i t i o n l a i d down by a C i r c u l a r c a n n o t r e s t r i c t o r wh i t t l e down t h e s c o p e o f a n e x emp t i o n no t i f i c a t i o n . Sa ndu r Mic r o C i r c u i t s L t d . 229 ELT 641 ( S .C . ) Emergence of ByProduct Not a Ground for Denying Exemption: Exemp t i o n no t i f i c a t i o n s p e c i f i c a l l y men t i o n s t h a t manu f a c t u r e o f s p e c i f i e d good s (C h a p t e r 29 E t h y l e n e / P r o p y l e n e ) on l y e l i g i b l e f o r e x emp t i o n . Due t o t h e manu f a c t u r i n g p r o c e s s , good s c o v e r e d und e r Chap t e r 27 ( n o n s p e c i f i e d good s s u c h a s E t h a n e / Me t h a n e ) we r e manu f a c t u r e d a u t oma t i c a l l y a n d i n e v i t a b l y a s a by

p r o d u c t . Und e r s u c h c a s e s , e x emp t i o n c a n n o t b e d e n i e d on t h e g r o u n d t h a t s ome o t h e r p r o d u c t s h a v e eme r g e d . Na t i o n a l Org a n i c Chem i c a l I n d u s t r i e s L t d 2008 ( 2 3 2 ) ELT 193 ( SC ) Clubbing of Clearances: Demand b a s e d on two un i t s h a v i n g c ommon Di r e c t o r s a n d on e pe r son l o o k i n g a f t e r a f f a i r s o f bo t h a n d s e c o n d no t h a v i n g c omp l e t e mach i n e r y t o manu f a c t u r e f i n a l p r oduc t , c anno t be a ba s e f o r c l ubb i ng o f c l e a r a n c e s . Es p e c i a l l y , i f a c c o u n t s o f bo t h un i t s man a g e d s e p a r a t e l y a n d c a p i t a l , p r em i s e s , mach i n e r y , l a b o u r a n d op e r a t i o n s a r e s e p a r a t e f o r bo t h t h e un i t s . Sup e r i o r P r o d u c t s ( 2 0 0 8 ) 230 ELT 3 ( SC ) Eve n i f t h e r e wa s c ommon a l i t y o f u s e o f o f f i c e p r em i s e s , t e l e p h o n e , s t a f f e t c . when t h e r e a r e s e p a r a t e man a g emen t , s e p a r a t e f i n an c i a l con t r o l and f i n an c i a l f u n d i n g t h e un i t s s h a l l b e t r e a t e d a s i n d ependen t . E l e c t r o Mech a n i c a l Engg . Co r p n . ( 2 0 0 8 ) 229 ELT 321 ( SC )

Apa r t f r om Logo o f t h e As s e s s e e , l o g o o f t h e Mar k e t i n g F i rm wa s a l s o a f f i x e d on t h e p r o d u c t . The r e f o r e , c l e a r a n c e by t h e As s e s s e e no t e n t i t l e d f o r SS I e x emp t i o n und e r t h e no t i f i c a t i o n . Ami t Engg . Work s ( 2 0 0 8 ) 223 ELT 166 (B om . ) Printing of Design / Shape [ RTP ] : Ma rk e t i n g Company s monog r am wa s i n h e x a g o n a l des i gn and i t p r i n t e d s u ch hexagona l de s i gn on t h e v i s i t i n g c a r d s o f i t s e x e c u t i v e s . Su c h p r i n t i n g do e s no t c o n f e r a n y own e r s h i p ov e r t h e d e s i g n . The r e f o r e , i f t h e Manu f a c t u r i n g Company ( S S I J o bwo r k e r ) p r i n t s a h e x a g o n a l a r t i s t i c d e s i g n on t h e c o r r u g a t e d box e s , t h e y c a n n o t b e he ld t o be us ing o the r p e r s o n s (Ma r k e t i n g Company s ) b r a n d n ame . Hen c e , t h e Manu f a c t u r i n g Company i s e l i g i b l e f o r SS I Exemp t i o n . Ni r l e x Sp a r e s Pv t . L t d ( 2 0 0 8 ) 222 ELT 3 ( SC ) 100% EOU: The b e n e f i t o f Exemp t i o n No t i f i c a t i o n 8 / 9 7 C .E . wou l d b e a v a i l a b l e e v e n i f impo r t e d

c o n s umab l e s a r e u s e d i n t h e manu f a c t u r e by 100% EOU . Con s umab l e s r e f e r s on l y t o ma t e r i a l wh i c h i s u t i l i z e d a s a n i n p u t i n t h e manu f a c t u r i n g p r o c e s s bu t i s no t i d e n t i f i a b l e i n t h e f i n a l p r oduc t by r e a s o n o f f a c t t h a t i t h a s go t c o n s umed t h e r e i n . As i a n Pe r o x i d e s L t d . 228 ELT 5 ( SC ) Customs Act applicable: Good s manu f a c t u r e d i n FTZ a r e no t on l y e x emp t e d f r om Exc i s e bu t a l l r aw ma t e r i a l , wh i c h i s impo r t e d f o r pu r p o s e o f manu f a c t u r e i s a l s o e x emp t e d f r om c u s t oms du t y a n d EPZ a r e t r e a t e d a s c u s t oms wa r e h o u s e whe r e f r om good s c a n n o t b e r emov e d f o r dome s t i c ma r k e t wi t h o u t p e rm i s s i o n a n d wi t h o u t p a ymen t o f du t i e s . Cu s t oms Ac t i s app l i c ab l e i n a l l s u ch cases . Pa dm i n i Te c h n o l o g i e s L t d 2008 ( 2 2 5 ) ELT 424 (D e l . ) 2. CUSTO MS 2.1 B ASICS OF CUSTO MS Case Gist Citation An a s s e s s e e impo r t e d c e r t a i n good s u s i ng ben e f i t av a i l a b l e t o a manu f a c t u r e r e x p o r t e r bu t h a d

no manu f a c t u r i n g un i t . The a s s e s s e e i s no t e n t i t l e d t o u s e t h e b e n e f i t . I f any bene f i t i s a cqu i r e d by f r a u d u l e n t mean s , i t wi l l no t con f e r any r i g h t t o t h e a s s e s s e e . Commi s s i o n e r Of Cu s t oms ( S e a ) , Chenn a i v s . CESTAT 2009 (Mad . ) Exports only under Customs Act: Expo r t s a r e t o b e mad e und e r t h e Cu s t oms Ac t a l o n e and no t a n y o t h e r Ac t . Hen c e , Sp e c i f i e d d r u g s e x p o r t e d wi t h o u t p e rm i s s i o n f r om t h e c ompe t e n t a u t h o r i t y und e r t h e Cu s t oms Ac t s h a l l a t t r a c t p r o s e c u t i o n und e r t h e Cu s t oms Ac t . D . Ramak r i s h n a n Vs I n t e l l i g e n c e Of f i c e r Na r c o t i c Con t r o l Bu r e a u 2009 ( 2 4 0 ) ELT 321 ( SC ) Exemption Burden on Assessee: Bu r d e n on impo r t e r t o p r o v e s a t i s f a c t i o n o f t e rm s a n d c o n d i t i o n s o f e x emp t i o n no t i f i c a t i o n Ho t e l Le e l a Ven t u r e L t d . ( 2 0 0 9 ) 234 ELT 389 ( SC ) Exemp t i o n no t i f i c a t i o n s a r e t o b e i n t e r p r e t e d s t r i c t l y . Bu r d e n on a s s e s s e e t o p r o v e t h a t t h e i t em

f a l l s wi t h i n f o u r c o r n e r s o f e x emp t i o n no t i f i c a t i o n . Pa r e n t e r a l Drug s ( I ) L t d . 2009 ( 2 3 6 ) ELT 625 ( SC ) Proper Officer: Onc e powe r h a s b e e n e x e r c i s e d u / s 4 o f Cu s t oms Ac t , on l y t h e P r o p e r Of f i c e r no t i f i e d f o r t h a t a r e a c o u l d e x e r c i s e t h e powe r s und e r t h e Ac t , a n d t h e Commi s s i o n e r ( P r e v e n t i v e ) wou l d h a v e no j u r i s d i c t i o n . Nob l e As s e t Co . L t d . 230 ELT 22 (B om . ) Oi l r i g s l o c a t e d b e yo nd t e r r i t o r i a l wa t e r s o f t h e Coun t r y , bu t wi t h i n Exc l u s i v e Econom i c z o n e a n d i n no t i f i e d De s i g n a t e d Ar e a a r e on l y wi t h i n I n d i a . So , v e s s e l s c a r r y i n g s t o r e s t o s u c h Oi l R i g s c a n n o t b e c o n s i d e r e d a s Fo r e i g n Go i n g Ve s s e l . The r e f o r e , t h e s e impo r t s a r e no t e l i g i b l e f o r e x emp t i o n , o r be con s i d e r e d a s expo r t , a s o i l r i g s i n EEZ o r Con t i n e n t a l Sh e l f a r e no t f o r e i g n go i n g v e s s e l s . Aban Loyd Ch i l e s Of f s h o r e L t d 2008 ( 2 2 7 ) ELT 24 ( SC ) Duty Liability on Goods reimported: Magn e t i c Good s a r e impo r t e d , a n d Cu s t oms Du t y pa id

t h e r e o n . Th e s e a r e e x p o r t e d a n d t h e n r e impo r t e d . As s e s s e e i s l i a b l e t o p a y t h e s ame du t y on good s r e impo r t e d a s h a d b e e n p a i d when good s we r e impo r t e d f o r t h e f i r s t t im e . Sup e r Ca s s e t t e s I n d u s t r i e s L t d 2008 ( 2 2 5 ) ELT 401 ( SC ) Option to choose exemption At the time of Original Export: Good s i n i t i a l l y e x p o r t e d by t h e As s e s s e e we r e r e impo r t e d b a c k t o I n d i a on b e i n g r e j e c t e d by t h e Fo r e i g n Buy e r a s d e f e c t i v e . At t h e t im e o f o r i g i n a l e x p o r t , t h e a s s e s s e e c l a imed e x emp t i o n und e r No t i f i c a t i o n 158 / 95 . At t h e t im e o f r e e x p o r t , t h e a s s e s s e e , wan t e d t o c l a im b e n e f i t und e r No t i f i c a t i o n No . 9 4 / 9 6 . He l d , t h a t on c e t h e a s s e s s e e op t e d f o r b e n e f i t und e r a No t i f i c a t i o n , t h e a s s e s s e e c anno t change i t s op t i o n a t a l a t e r s t a g e . I n d i a n Rayon & I n d u s t r i e s L t d 2008 ( 2 2 9 ) ELT 3 ( SC ) Exemption to Equipment Scope and Applicability: Pu r p o s e o f e x emp t i o n mus t b e c o n s i d e r e d i n e n t i r e t y . When e x emp t i o n i s g r a n t e d t o e q u i pmen t s mad e (C r a n e ) t o be used f o r a

p a r t i c u l a r pu r p o s e , t h e n s u c h e x emp t i o n wou l d a l s o e x t e n d t o t h e s e l f p r o p e l l e d modu l a r t r a n s p o r t s y s t em a t t a c h e d t o t h e c r a n e f o r p r o v i d i n g mob i l i t y . Re l i a n c e Pe t r o l e um L t d 2008 ( 2 2 7 ) ELT 3 ( SC ) 2.2 CLASSIFICA TION OF CUSTO MS Goods imported in CKD condition: Ru l e 2 ( a ) o f Ru l e s f o r I n t e r p r e t a t i o n o f Ta r i f f a p p l i c a b l e on l y i f a l l c ompon e n t s i n t e n d e d t o mak e a f i n a l p r o d u c t p r e s e n t e d a t s ame t im e f o r c u s t oms c l e a r a n c e . When impo r t e d good s p r e s e n t e d un a s s emb l e d / d i s a s s emb l e d c a n b e pu t t o g e t h e r by mean s o f a s imp l e f i x i n g d e v i c e o r by r i v e t i n g o r we l d i n g . Good s r e q u i r i n g c omp l i c a t e d p r o c e s s t o mak e f i n a l p r o d u c t , c a n n o t b e c o n s i d e r e d a s un f i n i s h e d good s h a v i n g e s s e n t i a l c h a r a c t e r o f c omp l e t e a r t i c l e s . The r e f o r e , c ompon e n t s o f Co l o u r Te l e v i s i o n s impo r t e d c a n n o t b e c o n s i d e r e d a s CTV impo r t e d i n CKD . Sony I n d i a L t d 2008 ( 2 3 1 ) ELT 385 ( SC ) 2.3 V ALUATION OF CUSTO MS Case Gist Citation

Va l u e o f a n y good s c h a r g e a b l e t o du t y o f Cu s t oms wou l d b e d e emed t o b e t h e p r i c e a t wh i c h s im i l a r good s a r e o r d i n a r i l y s o l d o r o f f e r ed f o r s a l e f o r de l i v e ry a t t h e t im e a n d p l a c e o f impo r t a t i o n i n t h e c o u r s e o f i n t e r n a t i o n a l t r a d e whe r e t h e buy e r a n d s e l l e r h a v e no i n t e r e s t i n bu s i n e s s o f e a c h o t h e r a n d t h e p r i c e i s t h e s o l e con s i d e r a t i o n f o r t h e s a l e or offer for sa le . Radh e y Shy am Ra t n a l a l Vs Commi s s i o n e r o f Cu s t oms ( 2 0 0 9 ) ( SC ) Case Gist Citation Onc e n a t u r e o f good s h a v e b e e n mi s d e c l a r e d , t h e v a l u e d e c l a r e d on impo r t e d good s b e c ome s un a c c e p t a b l e . Bu t , i t do e s no t a f f e c t t h e l e g a l po s i t i o n t h a t t h e bu r d e n i s on t h e Cu s t oms Au t h o r i t i e s t o e s t a b l i s h t h e c a s e o f mi s d e c l a r a t i o n o f good s o r v a l u a t i o n o r t h a t t h e d e c l a r e d p r i c e d i d no t r e f l e c t t h e t r u e t r an s ac t i on va lue . Va r s h a P l a s t i c s Pv t . L t d . v s UOI 2009 ( SC )

Bu r d e n on d e p a r tme n t t o e s t a b l i s h c a s e o f mi s d e c l a r a t i o n o f good s o r va lua t i on . I n t h e ab sence o f ev idence o f c o n t empo r a n e o u s impo r t s , r e f e r e n c e t o fo r e ign j ou rna l fo r f i n d i n g ou t c o r r e c t i n t e r n a t i o n a l p r i c e o f impo r t e d good s may not be irrelevant. Va r s h a P l a s t i c s Pv t . L t d . ( 2 0 0 9 ) 235 ELT 193 ( SC ) Rejection of transaction value: Whe r e t h e t r an s ac t i on va lue i s r e j e c t ed f o r ex t r a o rd in a ry o r s p e c i a l r e a s o n s , wi t h o u t s p e c i f y i n g such r e a son s , t h en such r e j e c t i on i s no t a c c e p t a b l e . Mo to r I n d u s t r i e s Co L t d ( 2 0 0 9 ) 244 ELT 4 ( SC ) Website information not valid Web s i t e i n f o rma t i o n a v a i l a b l e i n r e s p e c t o f s ome o t h e r mode l no t a c c e p t a b l e a s AV a s p e r Cu s t oms ( Va l u a t i o n ) Ru l e s , 1988 . Compe t e n t Bu s i n e s s Mach i n e s 2009 ( 2 3 6 ) ELT 629 ( SC ) Transaction Value under declared: Se c t i o n 14 p r o v i d e s f o r v a l u e b e d e emed t o b e pr ice a t

wh i c h s u c h o r l i k e good s o r d i n a r i l y s o l d Deemed v a l u e und e r Se c t i o n 14 ( 1 ) wou l d p r e v a i l when p r i c e d e c l a r e d do e s no t r e f l e c t p r i c e a t wh i c h s u c h o r l i k e good s o r d i n a r i l y so ld . Radh e y Shy am Ra t a n l a l VCC(ADJ . ) , 2009 ( 2 3 8 ) ELT 14 ( SC ) Rule 10(1)I of Customs Valuation Rules: When Roy a l t y P aymen t i s no t a c o n d i t i o n p re r e q u i s i t e t o s a l e o f good s ( impo r t o f good s ) , a n d when r o y a l t y p a ymen t i s no t b a s e d on v a l u e o f impo r t e d good s , bu t wa s p a y a b l e i n d ependen t o f s u ch va l u e a t s p e c i f i c un i t r a t e , i t c a n n o t b e a d d e d t o T r a n s a c t i o n Va l u e . WEP Pe r i p h e r a l s L t d ( 2 0 0 8 ) 224 ELT 30 ( SC ) Barge Charges after Customs Barrier: Ba r g e Hi r e Cha r g e s i n c u r r e d f o r un l o a d i n g f r om Mo th e r Ve s s e l on t o b a r g e a f t e r c r o s s i n g Cu s t oms Ba r r i e r , no t i n c l u d i b l e i n As s e s s a b l e Va l u e o f impo r t e d good s . HYGRDSE Pe l l e t s L t d ( 2 0 0 8 ) 225 ELT 337 ( SC )

Penal Charges paid for Late Arrival to Importer: Pe n a l c h a r g e s p a i d o r p e n a l t y a l l owan c e g i v e n by t h e Cha r t e r / Supp l i e r f o r l a t e a r r i v a l o f t h e ves s e l i s a p e rm i s s i b l e d e d u c t i o n f o r d e t e rm i n i n g T r a n s a c t i o n Va l u e . Hindu s t a n Z i n c L t d ( 2 0 0 8 ) 228 ELT A137 Price Decrease due to Volume Increase: Sub s t a n t i a l i n c r e a s e i n vo l ume may hav e r e s u l t e d i n d e c r e a s e i n p r i c e . I d e n t i c a l good s f o r t h i s pu r p o s e s h o u l d b e good s o f c ompa r a b l e qu a n t i t y impo r t e d a t t h e s ame t im e , a n d no t a l owe r vo l ume o f good s impo r t e d s ome t ime b a c k . I n i t i a t i n g Exp l o s i v e s Sy s t ems ( I ) L t d 2008 ( 2 2 4 ) ELT 343 ( SC ) Related Persons Mutuality of Interest: Expo r t e r ho l d i n g 30% o f Equ i t y Cap i t a l of impo r t e r do e s no t e s t a b l i s h mu t u a l i t y o f i n t e r e s t , a s Impo r t e r do e s no t ho l d any equ i t y i n t h e un i t o f t h e Supp l i e r . Vo l ume o f e x p o r t h a s i n c r e a s e d wh i c h i s t h e r e a son f o r dec r ea s e i n p r i c e . The bu r d e n t o p r o v e

und e r v a l u a t i o n l i e s on t h e Rev e n u e . I n i t i a t i n g Exp l o s i v e s Sy s t ems ( I ) L t d 2008 ( 2 2 4 ) ELT 343 ( SC ) Website Quotations: P r i c e s quo t e d i n t h e i n t e r n e t web s i t e o f t h e manu f a c t u r e r s c anno t be r e l i e d upon f o r s im i l a r / i d e n t i c a l good s v a l u e . Th e s e v a l u e s a r e no t c o n s i d e r e d t o b e ob t a i n e d t h r o u g h i nves t iga t ion . BC T r a d i n g Co . 223 ELT A . 13 3 ( SC ) Valuation of Electronic Goods: Va l u a t i o n b a s e d on c o n t empo r a n e o u s impo r t s ( s im i l a r good s impo r t e d a t a r o u n d t h e s ame t im e ) s h o u l d no t b e r e s o r t e d f o r e l e c t r o n i c good s wi t h o u t t e c h n i c a l c h a r a c t e r i s t i c s b e i n g s h own t o b e i den t i ca l . Xp r e s s Compu t e r s 2008 ( 2 2 5 ) ELT 78 ( T r i . Che . ) 2.4 CONVEY ANCES Case Gist Citation Demurrage Charges: I n t e r n a t i o n a l Ai r p o r t Au t h o r i t y o f I n d i a ( IAA I ) wa i v e d d emu r r a g e c h a r g e s t o t h e e x t e n t o f 80% und e r S e c 45 o f Cu s t oms Ac t , 1962 . IAA I who i s a n i n d ependen t s t a t u t o r y

co r po r a t i o n a l t h ough i s an app r ov ed c u s t o d i a n u / s 45 , e x e r c i s e s i t s i n d e p e n d e n t powe r a n d j u r i s d i c t i o n i n d emand i n g p a ymen t o f Demu r r a g e Cha r g e s . Na r a y a n I n t e r n a t i o n a l ( 2 0 0 8 ) 225 ELT 54 (D e l . ) Bill of Entry / Encashment of Bank Guarantee: Good s c a n n o t b e r e l e a s e d wi t h o u t f i l i ng o f Bi l l o f En t r y . Su c h c l e a r a n c e i s no t a p p r o p r i a t e , e v e n i f p e rm i t t e d by t h e High Cou r t . Howev e r , i f good s h a v e b e e n c l e a r e d , t h e Dep a r tme n t c a n e n c a s h t h e Bank Gua r a n t e e . Atma F i b r e s ( P ) L t d 2008 ( 2 3 0 ) ELT ( SC ) Re l e v a n t d a t e f o r l e v y o f i n t e r e s t i s t h e d a t e o f p a ymen t o f du t y a n d no t t h e da t e o f p r e s en t a t i on o f TR6 Cha l l a n f o r c l e a r a n c e o f good s . Vi j a y S i l k Hou s e 2008 ( 2 2 3 ) ELT 30 (A l l . ) Relevant Date: Impo r t e d Good s c l e a r e d f o r home c o n s ump t i o n u / s 46 upon p a ymen t o f du t y . Su c h good s a r e c o n t i n u e d t o b e h e l d i n t h e wa r e h o u s e und e r a n a p p l i c a t i o n u / s 49 a n d

s u b s e q u e n t l y r emov e d f o r home c o n s ump t i o n . The r e l e v a n t d a t e f o r l evy i s t h e da t e o f ob t a i n i n g c l e a r a n c e u / s 46 a n d no t t h e a c t u a l d a t e o f r emov a l . B i e c c o Law r i e L t d 2008 ( 2 2 3 ) ELT 3 ( SC ) Case Gist Citation Conveyance in Lots: Whe r e du t y on t h e wa r e h o u s e d good s i s p a i d a n d o u t o f cha rge o rde r f o r home c o n s ump t i o n i s mad e by t h e P r o p e r Of f i c e r i n c omp l i a n c e wi t h Se c . 68 , t h e good s r emov e d i n sma l l e r l o t s h a v e t o b e t r e a t e d a s c l e a r e d f o r home c o n s ump t i o n , a n d Impo r t e r wou l d no t b e r e q u i r e d t o p a y a n y t h i n g mo r e . No withdrawal of surrender: I t i s no t op e n t o t h e Impo r t e r t o wi t h d r aw t h e s u r r e n d e r o f good s . Impo r t e r c a n n o t b e p e rm i t t e d t o t a k e a d v a n t a g e o f own wrong a n d t o s a y t h a t a u c t i o n c o u l d no t b e f i na l i zed . Sh a k t i LPG L t d . 2008 ( 2 2 3 ) E .L . T . 129 ( S .C . ) Foreign going Vessel: No du t y i s p a y a b l e on impo r t o f S t o r e s , i f t h e v e s s e l i s a f o r e i g n go i n g

v e s s e l whe t h e r o r no t S t o r e s i s c o n s umed on Boa r d i n t h e I n d i a n Po r t . J a i s u Sh i p p i n g Co . Pv t . L t d ( 2 0 0 8 ) 229 ELT 3 ( SC ) Relinquishment of title to goods: 1 . I t i s no t n e c e s s a r y t o f u l f i l l t h e c o n d i t i o n s f o r c l e a r a n c e o f wa r e h o u s e d good s f o r r e l i n q u i s hmen t o f t i t l e t o good s . 2 . On r e l i n q u i s hmen t o f t i t l e , t h e impo r t e r i s a b s o l v e d on l y o f t h e l i a b i l i t y t o p a y Cu s t oms du t y bu t h e i s l i a b l e t o p a y o t h e r du e s l i k e r en t , i n t e r e s t e t c . 3 . Ev en i f o r d e r f o r c l e a r a n c e o f good s f o r home c o n s ump t i o n i s p a s s e d , p rope r au t ho r i z a t i o n and p a ymen t s a r e t o b e mad e b e f o r e r e l i n q u i s hmen t o f t i t l e . J .K .C emen t Work s ( 2 0 0 8 ) 223 ELT 138 (R a j . ) The r i g h t o f wa r e h o u s e k e e p e r t o r e c o v e r wa r e h o u s i n g c h a r g e s f r om t h e s a l e p roceed s i s i n p r i o r i t y t o t h e r i g h t t o r e c o v e r Cu s t oms Du t y . As s o c i a t e d Con t a i n e r Te rm i n a l L t d . ( 2 0 0 8 ) 226 ELT 169 (D e l . ) 3. SER ICE TAX LA V W 3.1 P ROCEDURES UNDE SER R VICE TAX LA W Case Gist Citation

I f t h e a c t i v i t i e s s h ow t h a t i n t h e a c t u a l r u n n i n g o f t h e un i t s , t h e r e wa s no d i s t i n c t i o n o r d ema r c a t i o n , t h e n t h e c l e a r a n c e s o f s u c h un i t s i s t o b e c l u b b e d . Rao I n d u s t r i e s ( 2 0 0 8 ) 9 STR 581 ( T r i B a ng ) Pe r s o n l i a b l e t o p a y Se r v i c e t a x wi l l b e l i a b l e t o p a y I n t e r e s t on d e l a y e d p a ymen t o f Se r v i c e t a x . The r e f o r e , i n c a s e o f impo r t o f s e r v i c e s , Se r v i c e r e c i p i e n t wi l l p a y in teres t . Ke r a l a S t a t e E l e c t r i c i t y Boa r d [ 2 0 0 8 ] 9 STR 3 ( SC ) Mi s t a k e do e s no t c o v e r a n y mi s t a k e wh i c h may b e d i s c o v e r e d by a c omp l i c a t e d p r o c e s s o f i n v e s t i g a t i o n , a r g umen t o r p r o o f . Su c h mi s t a k e s c a n n o t b e c o r r e c t e d by r ec t i f i ca t ion . Dev a Me t a l Powde r s P L t d v s . CTT , UP 2008 ( 9 ) STR 11 3 ( SC ) Fo r c l a im i n g a b a t emen t und e r No t f n No . 1 / 2 0 0 6 ST , Va l u e o f ma t e r i a l s s u p p l i e d f r e e o f c h a r g e by s e r v i c e r e c i p i e n t i s no t i n c l u d i b l e i n t h e va lu e o f t a x ab l e s e rv i c e . E r a I n f r a Eng i n e e r i n g L t d . ( 2 0 0 8 ) 11 STR 3 (D e l . )

Book i n g o f o r d e r s f o r f o r e i g n s u p p l i e r f o r s u p p l y o f good s i n I n d i a c a n n o t b e t r e a t e d a s Expo r t o f Se r v i c e s b e c a u s e s e r v i c e wa s no t p r o v i d e d ou t s i d e I n d i a a n d no t u s e d ou t s i d e I n d i a . Cani Merchandising Pvt. Ltd. (2008) 11 STR 10 (TriDel.) 3.2 TAXA BLE SER ICES V Case Gist Citation The s e r v i c e s p r o v i d e d by midd l eman a b r o a d i n f i n d i n g p r o s p e c t i v e buy e r s , t h e i r r e q u i r emen t a n d i n f o rm i n g a s s e s s e e a b o u t s ame i n r e l a t i o n t o ma r k e t i n g o r s a l e o f good s p r o d u c e d by t h em a r e c o v e r e d und e r d e f i n i t i o n o f Bu s i n e s s Aux i l i a r y Se r v i c e s . Nah a r Sp i n n i n g Mi l l s 2009 ( 1 4 ) STR J 1 6 3 ( S .C . ) Wharfage Charges Not liable: Wha r f a g e Cha r g e s i n c u r r e d by Cu s t om Hou s e Agen t i s no t i n c l ud ib l e i n t h e va lue o f t axab l e s e r v i c e a n d h e n c e no t s u b j e c t t o Se r v i c e t a x . Alv a r e s & Thoma s ( 2 0 0 9 ) 15 STR J 2 4 ( SC ) Service tax on marketing of lottery tickets Only prospective: S i n c e t h e e x p l a n a t i o n

( t a x i n g t h e ma r k e t i n g o f l o t t e r y t i c k e t s ) wid e n s t h e t a x n e t , i t i s no t c l a r i f i c a t o r y o r exp l an a t o r y i n n a t u r e . Fu r t h e r a s t h e e x p l a n a t i o n b r i n g s ou t s u b s t a n t i a l c h a n g e s i n l aw , i t i s no t r e t r o s p e c t i v e i n op e r a t i o n . Mar t i n Lo t t e r y Agen c i e s L t d . ( 2 0 0 9 ) 14 STR 593 ( SC ) Middlemans services Business Auxiliary: Se r v i c e s p r o v i d e d by midd l eman a b r o a d in f i n d i n g p r o s p e c t i v e buy e r s , t h e i r r e q u i r emen t a n d i n f o rm i n g a s s e s s e e a b o u t s ame i n r e l a t i o n t o ma r k e t i n g o r s a l e o f good s p r o d u c e d by t h em we r e c o v e r e d und e r d e f i n i t i o n o f Bu s i n e s s Aux i l i a r y Se r v i c e s . Nah a r Sp i n n i n g Mi l l s ( 2 0 0 9 ) 14 STR J 1 6 3 ( SC ) Mak i n g ho a r d i n g s / s i g n b o a r d s wi t h o u t p r e p a r i n g a d v e r t i s emen t i s no t c o v e r e d und e r Adv e r t i s i n g Agen c y Se r v i c e s . Hi t e c h Pub l i c i t i e s ( 2 0 0 8 ) 11 STR 140 ( T r i Ch e n n a i ) Case Gist Citation Hi r e Pu r c h a s e F i n a n c e s e r v i c e s a r e no t c o v e r e d und e r Bank i n g a n d F i n a n c i a l Se r v i c e s . I n t h e c a s e

o f Hi r e Pu r c h a s e , t i t l e t o good s v e s t s wi t h t h e Se l l i n g Company whe r e a s i n c a s e o f Hi r e Pu r c h a s e F i n a n c e a g r e emen t , i t v e s t s wi t h t h e pu r c h a s e r . Note: F i n a n c i n g t h e pu r c h a s e o f a s s e t i s no t c o v e r e d und e r Bank i n g a n d F i n a n c i a l Se r v i c e s . Ba j a j Au t o F i n a n c e L t d ( 2 0 0 8 ) 10 STR 433 ( SC ) Rubb e r p a c k i n g amoun t s t o manu f a c t u r e a n d h e n c e no t c o v e r e d und e r Bu s i n e s s Aux i l i a r y Se r v i c e s . J a y a n t h i Rubb e r s ( 2 008 ) 9 STR 153 ( T r i B a n g . ) P r omo t i o n o f a n y s e r v i c e , whe t h e r o r no t t a x a b l e i s c o v e r e d und e r Bu s i n e s s Aux i l i a r y Se r v i c e s . The F i n a n c e r s ( 2 0 0 8 ) 11 STR 140 ( T r i Ch e n n a i ) Annual Maintanence Services: Va l u e o f s p a r e s a n d p a r t s i s no t i n c l u d i b l e i n t h e g r o s s amoun t c h a r g e d i n c a s e o f AMC a n d s e r v i c e t a x i s p a y a b l e on l y on t h e amoun t o f c omm i s s i o n . Wip r o GE Med i c a l Sy s t ems Pv t . L t d . ( 2 0 0 8 ) 11 STR 142 ( T r i B a n g )

Mer e p r o c u r i n g o r h a v i n g o r d e r s f o r t h e p r i n c i p a l by a n a g e n t on p a ymen t o f c omm i s s i o n b a s i s wou l d no t amoun t t o C l e a r i n g a n d Fo rwa r d i n g Agen t s Se r v i c e s . Un i t e d P l a s t ome r s 10 STR 229 ( P & H) Interconnected Flats Not Separate: Two f l a t s c a n n o t b e c o n s i d e r e d a s a s i n g l e un i t s imp l y b e c a u s e t h e y a r e i n t e r c o n n e c t e d . The a g r e emen t s i n r e s p e c t o f t h e tw o f l a t s we r e s e p a r a t e a n d t h e r e we r e tw o d i f f e r e n t e l e c t r i c me t e r s i n r e s p e c t o f t h e tw o f l a t s . S .R a n g a r a j a n v s . Oye s t e r Co op e r a t i v e Hou s i n g So c i e t y L im i t e d (B om ) CA J o u r n a l May 08 Pa g e 1888 Construction Services Residential: Sa l e o f r e a d y bu i l t f l a t s by t h e Dev e l o p e r / P r omo t e r wi t h o u t e n g a g i n g t h e s e r v i c e s o f a n y o t h e r p e r s o n i s no t c o v e r e d und e r Con s t r u c t i o n S e r v i c e s . Gr e e n v i ew Land & Bu i l d c o n L t d . ( 2 0 0 8 ) 11 STR ( T r i De l . ) Cargo Handling Services: Loa d i n g a n d un l o a d i n g o f i r o n o r e i n a min e i s no t c o v e r e d und e r

Ca r g o Hand l i n g Se r v i c e b e c a u s e i r o n o r e c a n n o t b e c omme r c i a l l y c a l l e d Ca r g o . B .K .Th a k k a r ( 2 0 0 8 ) 9 STR 542 ( T r i Ko l k a t t a ) Mandap Keepers Services: Pa r k i n g Cha r g e s a r e i n c l ud ed a s pa r t o f t a x ab l e va l u e i n case of Mand a p Keep e r s s e r v i c e s . De s e r t I n n L t d . ( 2 0 0 8 ) 10 STR 573 ( T r i De l ) Photography Services: 1 . Bi fu r c a t i on o f g ro s s r e c e i p t s b e tw e e n good s s u p p l i e d a n d s e r v i c e s r e j ec t ed . 2 . Ta x a b l e s e r v i c e i n c l u d e s t h e v a l u e o f good s s u p p l i e s a s we l l . Wes t e r n Ra j a s t h a n Co l o u r Lab As s o . ( 9 ) STR 351 (R a j . ) P r e p a r i n g e l e c t o r pho t o i d e n t i t y c a r d s on b e h a l f o f E l e c t i o n Commi s s i o n o f I n d i a i s no t l i a b l e t o Se r v i c e t a x b e c a u s e a c t i v i t i e s p e r f o rmed by Sov e r e i g n / Pub l i c Au t h o r i t i e s a r e e x emp t f r om Se r v i c e t ax . C .S . S o f tw a r e En t e r p r i s e s L t d . ( 2 0 0 8 ) 10 STR 367 ( T r i Bang ) Ou t d o o r c a t e r i n g s e r v i c e s p r o v i d e d t o t h e emp l o y e e s wi t h i n t h e f a c t o r y

p r em i s e s a r e i n p u t s e r v i c e s . Vi c t o r Ga s k e t s I n d i a L t d . ( 2 0 0 8 ) 10 STR 363 ( T r i Mum) 4. COM MON TOP ICS 4.1 CENV T CRED A IT Case Gist Citation CENVAT Cr e d i t i s a dm i s s i b l e on p l a s t i c c r a t e s u s e d f o r t r a n s p o r t a t i o n o f r aw ma t e r i a l t o p r o c e s s i n g un i t s a n d F i n i s h e d good s f r om mach i n e t o s t o r a g e a r e a a s i n p u t s a n d a l s o a s Cap i t a l Good s . Ban c o P r o d u c t s ( I n d i a ) L t d . v s CCEx , Vadod a r a I 2009 ( 2 3 5 ) ELT 636 ( T r i LB ) Whe r e i n p u t s a r e e n t e r e d i n s t o c k r e g i s t e r bu t no t e n t e r e d i n Ex c e l Sh e e t ma i n t a i n e d i n c ompu t e r a n d t h e r e wa s no t h i n g t o s h ow wrong f u l a v a i lme n t o f CENVAT Cr e d i t , i n pu t s c anno t be c o n f i s c a t e d by t h e d e p a r tmen t Gr e e n Al l o y s Pv t . L t d . v s UOI 2009 ( 2 3 5 ) ELT 405 ( P&H . ) 100% EOU Eligible for Input credit: 100% EOUs a r e e n t i t l e d t o t a k e Cenv a t c r e d i t o f du t y on i n p u t s p r o c u r e d i n d i g e n o u s l y a n d when t h e y we r e no t i n a po s i t i o n t o u t i l i z e t h e s ame , t h e y

a r e e n t i t l e d t o r e f u n d und e r Ru l e 5 o f Cenv a t Cr e d i t Ru l e s , 2004 . ANZ I n t e r n a t i o n a l 2009 ( 2 4 0 ) ELT A16 ( SC ) Cenvat Credit on fuel: Cenv a t Cr e d i t c a n b e t a k e n on i n p u t s u s e d a s f u e l i n manufacture of exempted goods. Gu j a r a t Na rmad a Fe r t i l i z e r s Co . L t d . 2009 ( 2 4 0 ) ELT 661 ( SC ) No credit on electricity to sister units: Cr e d i t i s no t a l l owed on i n p u t s u s e d i n e lec t r ic i ty whe e l e d ou t t o s i s t e r un i t s , v e n do r s , j o i n t ven t u r e s . I f e l e c t r i c i t y i s p a r t l y c o n s umed f o r own bu s i n e s s a n d p a r t l y c l e a r e d ou t s i d e , t h e a s s e s s e e i s no t e n t i t l e d t o Cenv a t c r e d i t t o t h e ex t en t o f t h e exce s s e l e c t r i c i t y c l e a r e d at the contractual rates i n f a vou r o f j o i n t ven t u r e s , vendo r s , g r i d e t c . , wh i c h i s s o l d a t a p r i c e . Inclusion of Packing Material: Me r e f a c t t h a t p a c k i n g ma t e r i a l s v a l u e i s i n c l u d e d in a s s e s s a b l e v a l u e o f f i n a l p r o d u c t do e s no t e n t i t l e manu f a c t u r e r t o t a k e c red i t . Mar u t i Su z uk i L t d .

2009 ( 2 4 0 ) ELT 641 ( SC ) Case Gist Citation Shifting of factory: Ru l e 10 o f CENVAT Cr e d i t Ru l e s , 2004 p e rm i t s t h e assessee to t r ans fe r the a v a i l a b l e c r e d i t s a l o n g wi t h i n p u t s a n d c a p i t a l good s i n s t o c k a t t h e f a c t o r y t o t h e n ew l o c a t i o n p r o v i d e d c a p i t a l good s , i n p u t s a n d b a l a n c e unu t i l i s e d c r e d i t wa s p r o p e r l y r e c e i v ed and a c coun t ed i n r e g i s t e r s i n n ew un i t a f t e r sh i f t ing of f ac to ry . CESTAT 2009 ( 2 3 7 ) ELT A48 ( SC ) Low Su l p h u r Heav y S t o c k ( LSHS ) u s e d t o p r o d u c e s t e am , wh i c h i n t u r n u s e d f o r manu f a c t u r e o f e x c i s a b l e good s . Du t y p a i d on LSHS i s e l i g i b l e f o r CENVAT Cr e d i t . Gu j a r a t S t a t e F e r t i l i z e r s & Chem . L t d 2008 ( 2 2 9 ) ELT 9 ( SC ) Welding Electrodes for Repair of Machinery: CENVAT Cr e d i t a dm i s s i b l e on we l d i n g e l ec t rodes u s e d f o r r e p a i r s a n d ma i n t e n a n c e o f p l a n t a n d mach i n e r y , s i n c e s u c h p l a n t a n d mach i n e r y i s l o c a t e d wi t h i n t h e f a c t o r y i n wh i c h manu f a c t u r i n g a c t i v i t y t a k e s p l a c e .

Hindu s t a n Z i n c L t d v s . UOI 2008 ( 2 2 8 ) ELT 517 (R a j . ) Machinery Not Used for Production: Cr e d i t no t a v a i l a b l e f o r g a s e s , we l d i n g e l e c t r ode s used f o r r e p a i r s o f mach i n e r y wh i c h i s no t u s e d i n p roduc t i on . SA IL L t d 2008 ( 2 2 9 ) ELT A127 ( SC ) Supp l i e r c h a r g i n g h i g h e r r a t e o f du t y a t 24% i n s t e a d o f 16% , a n d t h e buy e r o f t h e good s p a i d t h e du t y a t 24% t o t h e s u p p l i e r . I n s u c h a c a s e , t h e buy e r c a n a v a i l c r e d i t f o r t h e t o t a l du t y o f 24% p a i d by h im . Pu r i t y F l e x p a c k 2008 ( 9 ) STR 125 (Gu j . ) Inputs Destroyed in Fire: Cr e d i t t a k e n on i npu t s o the r t ho se used i n f i n i sh ed good s / s em i f i n i s h e d good s n e e d s t o b e r e v e r s e d . B i o p a c I n d i a Co r p n . 2008 ( 2 2 4 ) ELT 548 (CESTAT Ahm . ) Capital Goods destroyed in fire: Su c h Cap i t a l Good s a r e n e i t h e r c l e a r e d no r r emov e d for sa le , a n d , a r e b e i n g u s e d f o r a numbe r o f y e a r s . Th e r e f o r e , t h e r e n e e d no t b e any r ev e r s a l o f c r ed i t

a v a i l e d on t h em . B i o p a c k I n d i a Co r p o r a t i o n L t d 2008 ( 2 2 4 ) ELT 548 (CESTAT Ahm . ) Unu t i l i z e d c r e d i t c a n b e r e f u n d e d e v e n when t h e As s e s s e e wa s i n a po s i t i o n t o u t i l i z e t h e CENVAT Cr e d i t , bu t p a i d f r om PLA . Bhav i n Te x t i l e s 2008 ( 2 2 1 ) ELT 44 (Gu j . ) Credit on Supplementary Invoice: CENVAT Cr e d i t i s a l l owed on s u p p l emen t a r y i nvo i c e i s s u ed by manu f a c t u r e r , who h a d p a i d t h e du t y on a c c o u n t o f mi s c l a s s i f i c a t i o n o f p r oduc t . S in c e t h e i n pu t s u p p l i e r s h o r t p a i d du t y on a c c o u n t o f mi s c l a s s i f i c a t i o n o f p r o d u c t , a n d no t on a c c o u n t o f s u p p r e s s i o n , c r e d i t i s a dm i s s i b l e . Hawk i n s Cook e r s L t d 2008 ( 2 3 2 ) ELT A68 (B om . ) De f e c t i n f o rma t o f i n v o i c e i s s u e d by t h e s u p p l i e r manu f a c t u r e r c a n n o t b e a c au s e f o r den i a l o f c r ed i t i n r e spec t o f such i npu t s used f o r manu f a c t u r e . JK I n d u s t r i e s 2008 ( 2 2 3 ) ELT 372 (R a j . )

Transfer of Credit Shifting of Factory: CENVAT Cr e d i t r u l e do e s no t mand a t e t r a n s f e r of c r e d i t c o r r e s p o n d i n g on l y t o qu a n t um o f i n p u t s t r a n s f e r r e d t o n ew f a c t o r y . Tr an s f e r o f av a i l a b l e c r e d i t s a l o n g wi t h i n p u t s a n d c a p i t a l good s i n s t o c k p e rm i t t e d . CCE v s . CESTAT 2008 ( 2 3 0 ) ELT 209 (Mad . ) CENVAT Cr e d i t c a n b e t a k e n i n r e s p e c t o f du t y p a i d on i n p u t s l o s t i n t r a n s i t be fo r e r e c e i p t i n t h e f a c t o r y when t h e e n t i r e good s r e c e i v e d und e r t h e c o n s i g nmen t a r e u s e d f o r manu f a c t u r e . On l y when i n v o i c e i s f o u n d t o b e wrong o r d i v e r s i o n o f i n p u t r e c e i v e d und e r t h e i n v o i c e , l e s s e r CENVAT Cr e d i t i s a dm i s s i b l e . Bh i lw a r a Sp i n n i n g L t d . ( 2 0 0 8 ) 222 ELT 362 (R a j . ) Quantum of Credit: 1 . Rec i p i e n t un i t i s e n t i t l e d t o a v a i l t h e b e n e f i t o f du t y p a i d by Supp l i e r un i t . 2 . Quan t um o f c r e d i t d e t e rm i n e d by t h e J u r i s d i c t i o n a l o f f i c e r s o f Supp l i e r un i t c a n n o t b e d e n i e d o r c h a l l e n g e d by t h e J u r i s d i c t i o n a l o f f i c e r s i n c h a r g e o f Re c i p i e n t un i t .

M DS Sw i t c h g e a r L t d . ( 2 0 0 8 ) 229 ELT 485 ( SC ) Onu s t o p r o v e t h a t As s e s s e e h a s a v a i l e d CENVAT Cr e d i t i s on t h e Rev e n u e . Au t o I g n i t i o n L t d 2008 ( 2 2 6 ) ELT 14 ( SC ) The r e i s no p r o v i s i o n wh i c h g i v e s f i n a l i t y t o d e c i s i o n o f AAR . Thu s , a wr i t p e t i t i o n und e r t h e c o n s t i t u t i o n c a n b e e n t e r t a i n e d by Cou r t s impugn i n g t h e r u l i n g g i v e n by t h e au tho r i t y . UAE Ex ch a n g e Cen t r e L t d . v s . UOI 2009 ( 2 3 6 ) ELT 223 (D e l . ) 4.2 D MAND & R E ECOVE Y OF DUTY, R R EFUND, D W RA BACK Case Gist Citation I n t e r e s t u / s 11AB o f Cen t r a l Ex c i s e Ac t , 1944 i s no t r e c o v e r a b l e when d i f f e r e n t i a l du t y i s p a i d on a c coun t o f p r i c e va r i a t i o n . CCEx & C v . C l o r i t e c h I n d . 2009 ( 2 3 5 ) ELT 17 (Gu j . ) Power of waiver Du Powe r t o wa i v e p r e depo s i t t o avo i d ha r d sh i p t o pa r t y a g a i n s t whom d emand i s r a i s e d i s d i s c r e t i o n a r y . As l o n g a s d i s c r e t i o n i s no t e x e r c i s e d i n an a r b i t r a r y and

wh ims i c a l f a s h i o n , a wr i t c o u r t wou l d no t i n t e r f e r e wi t h o r d e r o f wa i v e r o f p r edepo s i t o r r e f u s a l t h e r e o f . Mer e f a c t t h a t i s s u e s t h a t a r i s e f o r con s i d e r a t i o n o f appe l l a t e a u t h o r i t y we r e a r g u a b l e i s no t i n i t s e l f s u f f i c i e n t f o r a c omp l e t e wa i v e r o f p r e d e p o s i t . C i s c o Sy s t ems I n d i a Pv t . L im i t e d 2009 ( 2 3 4 ) ELT 618 (D e l . ) Case Gist Citation No Suppression of facts if Interpretation involved: The r e i s no s u p p r e s s i o n o f fac ts i f i n t e r p r e t a t i o n o f Ta r i f f En t r i e s i n v o l v e d o r when c o n f l i c t i n g c o u r t dec i s i on s ex i s t . Ne s t l e I n d i a L t d . 2009 ( 2 3 7 ) ELT A102 ( SC ) Whe r e t h e a s s e s s e e e n g a g e s i n d i l a t o r y t a c t i c s and abu s e o f t h e p ro c e s s o f l aw , i t d i s e n t i t l e s h im f r om a n y r e l i e f i n c l u d i n g p a r t wa i v e r o f p r edepo s i t . Al e x En t e r p r i s e s 2009 ( 2 3 6 ) ELT 10 ( SC ) Payment of only part of differential duty No SCN waiver: I f t h e who l e o f d i f f e r e n t i a l

du t y i s no t p a i d b e f o r e i s s u e o f Show Cau s e No t i c e , i t c a n n o t b e a g r o u n d f o r wa i v e r o f i s s u e o f SCN . Ca r p e n t e r c l a s s i c Ex im ( P ) L t d ( 2 0 0 9 ) 235 ELT 201 ( SC ) Forged Documents Extension allowed: Whe r e do c umen t s a r e f o r g e d , obv i o u s l y f r a u d i n vo l v ed and t h a t i s s u f f i c i e n t t o e x t e n d p e r i o d o f l im i t a t i o n u / s 28 o f Cu s t oms Ac t . Aa f l o a t Te x t i l e s ( I ) P . LTD . 2009 ( 2 3 5 ) ELT 587 ( SC ) Differential Duty on Price Revision No Penalty but interest attracted: I n c a s e o f r e t r o s p e c t i v e p r i c e r e v i s i o n , Show c a u s e c a n b e wa i v e d i f t h e d i f f e r e n t i a l du t y i s p a i d b e f o r e i s s u a n c e o f SCN bu t s u c h p a ymen t i s no t e x emp t f r om i n t e r e s t c h a r g e a b l e u / s 11AB o f Cen t r a l Exc i s e Ac t , 1944 . I n t e r e s t ( s i n c e s u c h d i f f e r e n t i a l du t y wi l l b e t r e a t e d a s s h o r t p a ymen t a n d hen c e i n t e r e s t i s a t t r a c t e d ) . SKF I n d i a L t d . 2009 ( 2 3 9 ) ELT 385 ( SC ) Drawback need not be equal to actual duty: Re f u n d i s a v e r a g e amoun t o f du t y p a i d on

ma t e r i a l s u s e d i n manu f a c t u r e o f e x p o r t good s . Re f u n d o f amoun t n e e d not be arithmetically equal t o du t i e s a c t u a l l y p a i d . Libe r t y I nd i a 2009 ( 2 4 1 ) ELT 326 ( SC ) Misdeclartion of nature of goods: S i n c e t h e a s s e s s e e mi s d e c l a r e d t h e no rma l f o o d s u p p l emen t s a s a y u r v e d i c p r o p r i e t a r y med i c i n e s wi t h i n t e n t t o e v a d e p a ymen t o f e x c i s e du t y , e x t e n d e d p e r i o d o f l im i t a t i o n wa s r i gh t l y i nvocab l e . DXN He r b a l Mfg . ( I n d i a ) Pv t . L t d . 2009 ( 2 4 1 ) ELT A121 ( SC ) Refund of predeposit if stay not obtained: Whe r e p r e d e p o s i t wa s mad e by a s s e s s e e a s pe r Tr i buna l s d i r e c t i o n s and i f t h e Rev e n u e h a d no t go t a n y s t a y o r d e r , r e f u n d wa s r e q u i r e d t o b e mad e a n d s o a s s e s s e e c o u l d t a k e c r e d i t o f amoun t i n h i s PLA . Bha r a t Fo am Udyog ( P ) L t d . ( 2 0 0 9 ) 242 ELT A20 ( SC ) Priority of Secured Creditor over Duty: Exc i s a b l e du t y wou l d h a v e p r i o r i t y o f c l a im on l y i f t h e r e i s spec i f i c p rov i s i on g iv i ng s u c h p r i o r i t y t o S t a t e du e s . I f du e s a r e t o b e r e c o v e r e d me r e l y

a s a r r e a r s o f l a nd r e v enue , t h en t h o s e d e b t s c a n n o t h a v e p r i o r i t y o f c l a im ov e r du e s o f a s e c u r e d c red i t o r . Kr i s h n a L i f e s t y l e Te c h n o l o g i e s L t d ( 2 0 0 9 ) 242 ELT A118 ( SC ) UTI Bank L t d . 2009 ( 2 3 8 ) ELT A25 ( SC ) ] The l i a b i l i t y o f i n t e r e s t u / s 11BB o f t h e Cen t r a l Exc i s e Ac t , 1944 a r i s e s a f t e r t h e exp i r y o f 3 mon t h s f r om t h e d a t e o f r e f u n d a p p l i c a t i o n by t h e a p p l i c a t i o n ( i f t h e ma t t e r s g i v i n g r i s e t o r e f und s a t t a i n ed f i n a l i t y ) U . P . Tw i g a F i b e r Gl a s s L t d . ( 2 0 0 9 ) 243 ELT A27 ( SC ) No duty from principal for manufacture by Job W orker: Du t y s h o u l d no t b e d emand e d f r om p r i n c i p a l r e g a r d i n g good s manu f a c t u r e d by j o b wo r k e r e v e n i f s p e c i f i c a t i o n s f o r j o b wo r k i s p r o v i d e d by t h em a n d t h e y h a v e c o n t r o l o f t h o s e un i t s . No duty from Job worker for fraud by principal: S i n c e J o b wo r k e r h a s no t s u p p r e s s e d any f a c t s wi t h i n t e n t t o e v a d e p a ymen t o f du t y i n r e s p e c t o f good s manu f a c t u r e d by h im und e r t h e

b r a n d n ame o f t h e p r i n c i p a l , h e i s no t l i a b l e t o p a y du t y f o r a n y f r a u d c omm i t t e d by h i s p r i n c i p a l . So , no du t y / p e n a l t y i s impo s a b l e on J o b wo r k e r . G .T .C . I n d u s t r i e s L t d . ( 2 0 0 9 ) 243 ELT A62 ( SC ) No penalty if no duty payable: When du t y i t s e l f c a n n o t b e impo s e d by i n v o k i n g ex t ended pe r i od o f l im i t a t i o n , no o r d e r o f impo s i n g p e n a l t y u / s 11 4A c a n b e s u s t a i n e d . S i n c e du t y c o u l d no t b e impo s e d , o r d e r impo s i n g p e n a l t y u / s 11 4A o f Cu s t oms Ac t , 1962 wa s no t su s t a i n ab l e . M.M .K . J ewe l l e r s ( 2 0 0 9 ) 243 ELT A90 ( SC ) Mer e f i l i n g o f a p p l i c a t i o n b e f o r e Se t t l emen t Commi s s i o n u / s 32E o f CEA f o r wa i v e r o f i n t e r e s t , p e n a l t y a n d immun i t y f r om p r o s e c u t i o n a n d s u o mo t u p a ymen t o f du t y do e s no t mean a dm i s s i o n o f a l l ega t i on s o f f r aud. Bo s c h Cha s s i s Sy s t ems I n d i a L t d . ( 2 0 0 8 ) 232 ELT 622 ( T r i LB ) Provocation for Invoking Extended Time Limit: Ex t e n d e d T ime l im i t f o r i s s u i n g SCN c anno t

b e i n v o k e d wi t h o u t i n v o k i n g p r o v i s o t o Se c t i o n 11A i . e . t h e SCN s h o u l d c o n t a i n t h e f a c t t h a t du t y h a s no t b e e n p a i d du e t o f r a u d , c o l l u s i o n o r wi l l f u l mi s s t a t emen t o r s upp r e s s i on o f f a c t s . Sh r e e Ram S t e e l Ro l l i n g Mi l l s 2008 ( 2 2 1 ) ELT 333 (B om . ) Proof in case of Excess Collection: I n t h e a b s e n c e o f p r o o f t h a t t h e As s e s s e e co l l e c t ed any amoun t i n e x c e s s o f wha t i s s h own i n t h e i n v o i c e , d emand c a n n o t b e su s t a i n ed . Ta t a Engg & Loc omo t i v e Co . L t d ( SC ) 218 ELT 644 W rong declaration when not suppression: Wrong de c l a r a t i o n c anno t be s a i d t o be a d e l i b e r a t e s u p p r e s s i o n when T r i b u n a l r e c o r d e d a f i n d i n g o f mu t u a l mi s t a k e on bo t h s i d e s i n wrong l y de c l a r i n g end u s e o f p r oduc t . Re l i a n c e I n d u s t r i e s L t d 2008 ( 2 2 3 ) ELT 586 (B om . ) Larger Period of Limitation Non Applicability: La r g e r p e r i o d o f l im i t a t i o n c a n n o t b e i n voked by Dep a r tmen t , when t h e c i r c u l a r s i s s u e d by t h e Dep a r tme n t d i d no t s e t t l e t h e c o n f l i c t b e tw e e n t h e

v i ew s o f Min i s t r y o f F i n a n c e a n d Min i s t r y o f Ag r i c u l t u r e , on t h e c l a s s i f i c a t i o n o f a p r oduc t . Ka r n a t a k a Ag r o Chem i c a l s 2008 ( 2 2 7 ) ELT 12 ( SC ) Case Gist Citation Audit Observation by AGs Office: Aud i t ob s e r v a t i o n r a i s e d by Accoun t a n t Gen e r a l c a n n o t b e a b a s i s f o r r a i s i n g a d emand on a s s e s s e e . I t c a n on l y b e a s t a r t i n g po i n t f o r i n v e s t i g a t i o n . Acc r a P a c ( I n d i a ) Pv t . L t d 2008 ( 2 2 9 ) ELT 473 (GO I ) When t h e f i r s t s h ow c a u s e no t i c e wa s i s s u ed , t h e ex t ended pe r i od o f l im i t a t i o n wa s no t r e s o r t e d t o . When i n t h e o r i g i n a l no t i c e , s u c h a n a l l e g a t i o n h a d no t b e e n mad e , t h e s ame c o u l d no t h a v e b e e n mad e s ub s equen t l y a s t h e f a c t s a l l e g ed t o h a v e b e e n s u p p r e s s e d by t h e a p p e l l a n t we r e known t o t h em . Geo Te c h Found a t i o n s & Con s t r u c t i o n 2008 ( 2 2 4 ) E .L . T . 177 ( S .C . ) SSI Exemption falsely availed Extended period of Limitation: No t f n No . 175 / 8 6 C .E . s t i p u l a t e s t h e b e n e f i t o f e x emp t i o n t o SS I wi l l no t b e a v a i l a b l e t o t h e good s on wh i c h t h e b r a n d

n ame o f a n o t h e r manu f a c t u r e r i s a f f i x e d . As s e s s e e f u l l y awa r e o f f a c t t h a t b r a n d wa s no t owne d by i t and t h a t i t be l onged t o t h e i r f o r e i g n c o l l a b o r a t o r . Hen c e , cond i t i o n s f o r i n vok i ng ex t ended pe r i od o f l im i t a t i o n f u l l y s a t i s f i e d . Dug a r Te t e n a l I n d i a L t d . 2008 ( 2 2 4 ) E .L . T . 180 ( S .C . ) Fo r t h e pu r p o s e o f d emand o f du t y a n d l e v y o f pena l t y , t h e pe r i o d o f l im i t a t i o n i s t o b e r e c k o n e d b a c kwa r d f r om t h e d a t e o f i s s u e o f Show Cau s e No t i c e . Ma t h a n i a Fa b r i c s ( 2 0 0 8 ) 221 ELT 481 ( S .C . ) Dispute in Classification Invocation of Extended Period: When d i s p u t e p r e v a i l e d i n ma t t e r o f c l a s s i f i c a t i o n , a s s e s s e e c a n n o t b e h e l d gu i l t y o f s u p p r e s s i o n o r mi s s t a t emen t . Th e r e f o r e , cha rg e o f s upp r e s s i on and i n voc a t i on o f e x t e n d e d p e r i o d o f l im i t a t i o n u / s 11A ( 1 ) no t s u s t a i n a b l e . I s h a a n Re s e a r c h Lab ( P ) L t d ( 2 0 0 8 ) 230 ELT 7 ( SC ) Service Tax Return Extended Period: Non d e c l a r a t i o n o f g r o s s amoun t c h a r g e d i n t h e ST 3

r e t u r n s a n d c l a im i n g a b a t emen t s u o mo t u a r e c a s e s whe r e i n t h e e x t e n d e d pe r i od c an i n voked f o r l e v y i ng pena l t y . McK in s e y & Co . I n c . 2008 ( 1 2 ) STR J 1 0 2 (B om . ) I n t h e ab s ence o f any l e g a l r e q u i r emen t t o v e r i f y t h e c o r r e c t n e s s o f t h e d e c l a r a t i o n f u r n i s h e d by t h e P r i n c i p a l Supp l i e r , t h e j o b wo r k e r c anno t be he l d f o r s upp r e s s i o n o f f a c t s o r con t r a v en t i on t o e v a d e du t y . La j y a Dye i n g a n d B l e a c h i n g Work s 2008 ( 2 2 4 ) ELT 345 ( SC ) I n t e r e s t p a y a b l e und e r a bond e x e c u t e d b e f o r e DGFT i s no t a n i n t e r e s t p a y a b l e und e r t h e Cu s t oms Ac t . Rexno r d E l e c t r o n i c s & Con t r o l s L t d 2008 ( 2 2 4 ) ELT 184 ( SC ) Rate of Interest: Ra t e p r e v a i l i n g a t t h e t im e o f d e f a u l t i s a p p r o p r i a t e r a t e o f i n t e r e s t , a n d no t t h e r a t e p r e v a i l i n g on a s u b s e q u e n t d a t e i . e . on t h e d a t e o f p a ymen t o f du t y . P r i y a d a r h s i n i Cemen t s L t d 2008 ( 2 2 4 ) ELT 429 (CESTAT Bang . )

Di f f e r e n t i a l du t y i s du e when t h e as ses see l e a rn s of r ev i s ed r a t e s a p p l i c a b l e wi t h r e t r o s p e c t i v e e f f e c t , wh i c h i s a f t e r t h e c l e a r a n c e o f good s . Ruch a Eng i n e e r i n g Pv t . L t d . 2008 ( 2 2 3 ) ELT 161 (B om . ) Mar i s Sp i n n e r s L t d ( 2 0 0 8 ) 223 ELT 163 (Mad . ) Refund of Bank Guarantee: Se c t i o n 27 i s no t a p p l i c a b l e t o r e f u n d o f Bank Gua r a n t e e execu t ed . The r e f o r e , s u c h c l a im i s no t b a r r e d by l im i t a t i o n o f t im e p r e s c r i b e d und e r t ha t sec t ion . Ar i s t o Sp i n n i n g Mi l l s 2008 ( 2 2 6 ) ELT 42 (Mad . ) Refund Claim Non Filing of Appeal: As s e s s e e wa s d e n i e d r e f u n d on t h e g r o u n d t h a t a s s e s smen t wa s no t c h a l l e n g e d . When t h e r e i s no p r o v i s i o n i n t h e s t a t u t e f o r a s s e s smen t , no o r d e r c apab l e o f be i ng appe a l ed aga i n s t c an b e p a s s e d . The r e f o r e , a n a s s e s s e e c anno t f i l e an app e a l a g a i n s t non e x i s t i n g a s s e s smen t o r d e r . Hen c e , h i s c l a im o f r e f u n d c a n n o t b e d e n i e d on t h e g r o u n d a s s e s smen t wen t un c h a l l e n g e d . Cen t r a l Of f i c e Mewa r P a l a c e Org . 2008 ( 1 2 ) STR 545

(R a j . ) I f a s s e s s e e wa s un a b l e t o r e c o v e r t h e t a x f r om i t s c u s t ome r s t h e a s s e s s e e c a n n o t b e mad e t o p a y Se r v i c e t a x i n e x c e s s a n d i f s u c h r e f und i s a s k ed , i t c anno t be c o n s i d e r e d a s un j u s t . S t a n d a r d Cha r t e r e d Bank 2008 ( 1 0 ) S . T .R . 6 (K a r . ) Re f u n d c l a im o f t h e a s s e s s e e wa s no t a dm i s s i b l e on g r o u n d s o f Un j u s t En r i c hmen t a s t h e amoun t c h a r g e d by a s s e s s e e wa s i n c l u s i v e o f du t y h e n c e i n c i d e n c e o f du t y wa s p a s s e d on t o t h e buy e r . Cemen t Co r p n . Of I n d i a [ 2 0 0 8 ] 232 ELT A107 State E vs. Central E Exc i s e du t y D D: c o l l e c t e d on c e r t a i n good s wh i c h we r e payab l e t o S t a t e Gov e r nmen t , wa s p a i d t o t h e c r e d i t o f Cen t r a l Gov e r nmen t by mi s t a k e . Sub s e q u e n t l y , t h e a s s e s s e e p a i d t h e amoun t t o S t a t e Gov e r nmen t . Und e r s u c h c i r c ums t a n c e s , r e f u n d o f du t y p a i d t o Cen t r a l Gov e r nmen t i s no t c o v e r e d by Doc t r i n e o f Un j u s t En r i c hmen t . B i o c h em Ph a rma c e u t i c a l s 2008 ( 2 2 3 ) ELT A . 9 4 (B om . )

Statutory vs. Equitable Interest: Wr i t t e n d emand / r e q u e s t i s r e q u i r e d f o r equ i t a b l e i n t e r e s t ( i . e . c l a im o f i n t e r e s t on g r o u n d s o f e q u i t y ) . Howev e r , f o r s t a t u t o r y i n t e r e s t , no s u c h r e q u e s t i s r e q u i r e d , a s t h e c l a im h a s a p p r o v a l und e r t h e l aw i t s e l f . UOI v s . Sh r e e j i Co l o u r Chem I n d u s t r i e s 2008 ( 2 3 0 ) ELT 199 ( SC ) Interest on delayed refund Appeal to High Court: When o r d e r s p a s s e d by Commi s s i o n e r a n d S e t t l emen t Commi s s i o n a r e no t qu e s t i o n e d by Rev e nu e , t h e Commi s s i o n e r o f App e a l s a s we l l a s T r i b u n a l we r e j u s t i f i e d i n a l l ow i n g t h e i n t e r e s t c l a imed by a s s e s s e e Mo to r o l a I n d i a P r i v a t e L t d . 2 0 0 8 ( 2 2 1 ) E .L . T . 489 (K a r . ) Condonation of Delay in Filing Drawback Claim: De l a y i n f i l i n g d r awb a c k c l a im c a n b e c o n do n e d , when t h e n e c e s s a r y do c umen t s / p a p e r s we r e l y i n g wi t h t h e Dep a r tme n t . Und e r Ru l e 17 o f Dr awb a c k Ru l e s , i f a n y o f t h e p r o v i s i o n s c o u l d no t b e c omp l i e d wi t h du e t o r e a s o n s b e yo n d t h e

c o n t r o l o f t h e impo r t e r / a g e n t , Cen t r a l Gov e r nmen t c a n a l l ow d r awb a c k i n r e s p e c t o f s u c h good s . S t o v e c I n d u s t r i e s L t d 2008 ( 2 2 1 ) ELT 328 (Gu j . ) 4.3 SEARCH & SEIZURE Case Gist Citation Whe r e impo r t e r c l e a r s impo r t e d good s on t h e b a s i s o f c l a s s i f i c a t i o n wh i c h wa s uph e l d by Commn r . Of Cu s t oms (App e a l s ) , a n d du t y i s p a i d b a s e d on s u c h c l a s s i f i c a t i o n , Cu s t oms o f f i c e r s c a n n o t s e i z e s u c h good s f o r c o l l e c t i n g du t y i n e x c e s s o f wha t i s a s s e s s e d a s p e r t h e impo r t e r s c l a s s i f i ca t i on . T i l l t h e a s s e s smen t i s s e t a s i d e , t h e Cu s t oms Of f i c e r s c a n n o t s e i z e t h e good s a s s e s s e d a n d c l e a r e d und e r a Head i n g on t h e g r o u n d t h a t t h e good s we r e l i a b l e t o b e a s s e s s e d und e r a n o t h e r head i ng . Vod a f o n e Es s a r Sou t h L t d . v s . UOI 2009 ( 2 3 7 ) ELT 35 (B om . ) Cu s t oms a u t h o r i t i e s a r e no t a u t h o r i z e d t o a u c t i o n c o n f i s c a t e d good s du r i n g t h e pe r i od o f p e n d e n c y o f a p p e a l . Su c h a u c t i o n i s no t j u s t i f i e d .

Cu s t oms Au t h o r i t i e s a r e l i a b l e t o r e t u rn t h e en t i r e s a l e p roceed s wi t h o u t d e d u c t i n g du t y bu t s ub j e c t t o deduc t i o n o f f i n e and p e n a l t y wi t h i n t e r e s t . Sh a b i r Ahmed Abdu l Rehman v s UOI 2009 ( 2 3 5 ) ELT 402 (B om . ) Jurisdiction for Seizure Exclusive Economic Zone: R i g h t s ov e r t e r r i t o r i a l wa t e r s , con t i n en t a l s h e l f a n d c o n t i g u o u s z o n e f r om EEZ t o b e e x e r c i s e d by I n d i a , a n d by S t a t e s c o n s i s t i n g Un i o n o f I n d i a . The r e f o r e , Cu s t oms Of f i c e r s o f a p a r t i c u l a r c i t y (Mumba i ) c a n n o t e x e r c i s e j u r i s d i c t i o n ov e r no t i f i e d a r e a s o f EEZ . Nob l e As s e t Co . L t d 2008 ( 2 3 0 ) ELT 22 (B om . ) An Advo c a t e a p p e a r i n g on b e h a l f o f h i s c l i e n t i n a c a s e c a n n o t b e s ummon e d f o r c r o s s e x am i n a t i o n u / s 108 Mohammed Zah i r ( 2 0 0 8 ) 221 ELT 172 (K e r . ) Seizure visavis detention: De t e n t i o n o f good s a n d s e i z u r e t h e r e o f no t on e a n d t h e s ame . I n

d e t e n t i o n , c u s t o d y o f good s t a k e n without i n v o l v i n g d e p r i v a t i o n . Se i z u r e mean s t o t a k e po s s e s s i o n o f good s i n v o l v i n g d e p r i v a t i o n . P r o Mus i c a l s 2008 ( 2 2 7 ) E .L . T . 182 (Mad . ) Redemption Fine Cleared without Bond / Undertaking: Good s i f p e rm i t t e d t o b e c l e a r ed i n i t i a l l y wi t h o u t d emand i n g e x e c u t i o n o f bond / und e r t a k i n g , a n d l a t e r p roceed ing s t a k en f o r und e r v a l u a t i o n o r o t h e r i r r e g u l a r i t y , r e d emp t i o n f i n e c a n n o t b e impo s e d . Se c t i o n 125 i s a p p l i c a b l e on l y when good s a r e c l e a r e d by a u t h o r i t i e s upon f u r n i s h i n g o f und e r t a k i n g / bond . Ra j a Imp e x ( P ) L t d 2008 ( 2 2 9 ) ELT 185 ( P&H) 4.4 OFFENCES AND P ENAL TIES Case Gist Citation A p e r s o n c h a r g e d wi t h mi s d e c l a r a t i o n i s e n t i t l e d t o know t h e g r o u n d on t h e b a s i s whe r e o f h e wou l d b e p e n a l i z e d a n d i s e n t i t l e d t o a p rope r hea r i ng . Ko t h a r i F i l amen t s v s . Commi s s i o n e r o f Cu s t oms 2008 ( SC )

Cu s t oms Au t h o r i t i e s c a n n o t t a k e t h e any pe r son i n t o cu s t ody f o r cu s t od i a l i n t e r r oga t i on s i nce i n ca s e o f de t en t i on , he has t o be s en t t o j u d i c i a l r emand . Arun Kuma r Gup t a v s . DRI , De l h i 2009 ( 2 3 5 ) ELT 457 (D e l . ) Gov e r nmen t du e s do no t h a v e p r i o r i t y o f c l a im ov e r t h a t o f s e c u r e d c r e d i t o r s . Howev e r , i f l e g i s l a t u r e mak e s t h o s e du e s a s h a v i n g p r i o r i t y o f c l a im s , t h e S t a t e du e s wi l l r a n k h i g h e r i n p r i o r i t y o f c l a im s , t h e S t a t e du e s wi l l r a n k h i g h e r i n p r i o r i t y t h a n du e s o f a s e cu r e c r ed i t o r . Ta t a Me t a l i k s L t d 2009 ( 2 3 4 ) ELT 596 (B om . ) Penalty for nonpayment Mandatory: The r e i s no d i s c r e t i o n wi t h t h e a u t h o r i t y t o impo s e p e n a l t y l e s s t h a n 100 %( o r 25% i n s ome c a s e s ) u / s 11AC o f CEA a n d e v e n p a ymen t o f short/unpaid duty before issuance of SCN does not exempt a n a s s e s s e e f r om p a ymen t o f p e n a l t y u / s 11AC . Penalty interest unpaid: Pen a l t y u / s 11AC i s a p p l i c a b l e f o r nonp a ymen t o f i n t e r e s t f o r 30

d a y s f r om d a t e o f d emand . Ra j a s t h a n Sp i n n i n g & Weav i n g Mi l l s 2009 238 ELT 3 ( SC ) S i gma S t e e l Tub e s 2009 238 ELT A53 ( SC ) S t e r l i t e Op t i c a l Te c h . L t d . 2009 ( 2 4 0 ) ELT A45 ( SC ) Payment of duty before issue of SCN: I n t e r e s t p a y a b l e e v e n when du t y p a i d b e f o r e i s sue of s h ow c a u s e no t i c e . Ra j a s t h a n Sp i n n i n g & Weav i n g Mi l l s 2009 238 ELT 3 ( SC ) No penalty if conflicting decisions exist: Eve n i f wrong l y a v a i l e d i n p u t c r e d i t a s a b o v e , p e n a l t y i s no t l e v i a b l e , on a c c o u n t o f c o n f l i c t o f v i ew s e x p r e s s e d by v a r i o u s T r i b u n a l s /H i g h Cou r t s . Mar u t i Su z uk i L t d . 2009 ( 2 4 0 ) ELT 641 ( SC ) Case Gist Citation The wo r d O r u s e d i n Se c t i o n 135 ( 1 ) ( a ) s hou l d be r e ad d i s j un c t i v e l y and no t c o n j u n c t i v e l y . P r o h i b i t i o n n e e d no t h a v e n e x u s wi t h t h e p a ymen t o f du t y . Gu r c h a r a n S i n g h v s . DRI 2008 ( 2 2 4 ) ELT 497 ( SC )

Exoneration by CESTA Status of Prosecution T Proceedings: P r o s e c u t i o n p r o c e e d i n g s w i l l s t a n d nu l l i f i e d , i f t h e r e l a t e d a p p e a l i s d i s p o s e d i n f a v o u r o f t h e As s e s s e e . Th i s i s a p p l i c a b l e e v e n when a p p e a l i s d i s p o s e d o f f i n f a v o u r o f a s s e s s e e du e t o non f i l i n g o f a p p e a l by t h e Rev e n u e a g a i n s t t h e o r d e r o f t h e CESTAT . J P Tob a c c o P r o d u c t s ( P ) L t d 2008 ( 2 2 9 ) ELT 325 ( SC ) Cr im i n a l p r o s e c u t i o n c a n n o t b e p e rm i t t e d t o c o n t i n u e a g a i n s t p e t i t i o n e r s on c e a d j u d i c a t i o n p r o c e e d i n g s on me r i t s h a v e b e e n f o u n d i n f a vou r o f pe t i t i o n e r s . An i l Maha j a n (DEL ) CA J o u r n a l Ap r i l 08 P ag e 1750 P r o c e e d i n g s i n a Cou r t l a c k i n g t e r r i t o r i a l j u r i s d i c t i o n wou l d no t r e n d e r t h e p r o c e e d i n g s vo i d un l e s s i t ha s occa s i oned a f a i l u r e o f j u s t i c e . DRI v s . Kuma r p a l 2008 ( 2 2 4 ) ELT 522 (D e l . ) Powe r t o a r r e s t i s c i r c ums c r i b e d by ob j e c t i v e c o n s i d e r a t i o n s a n d c a n n o t b e e x e r c i s e d on wh ims , cap r i c e , o r f ancy o f t h e o f f i c e r . Pa d am Na r a i n Agg a rwa l ( SC ) CA J o u r n a l Dec 2008 P ag e 1000

Compound i n g c a n n o t b e a l l owed i f t h e r e a r e appa r en t con t r a d i c t i o n s , i n con s i s t e n c i e s o r i n c omp l e t e n e s s i n t h e d e c l a r a t i o n / s t a t emen t s o f a n a p p l i c a n t s u bm i t t e d / p r e s en t ed be fo r e t h e c ompound i n g a u t h o r i t y . UOI v s . An i l Chan a n a 2008 ( 2 2 2 ) ELT 48 ( SC ) Mandatory Penalty No Discretion on Quantum: The r e i s no s c o p e f o r a n y d i s c r e t i o n wh i l e impo s i n g p e n a l t y u / s 11AC . Men r e a (ma l a f i d e i n t e n t i o n ) i s no t a n e s s en t i a l i ng r ed i en t f o r l evy o f p e n a l t y u / s 11AC . God av a r i Mana r Sa h a k a r i Sa kh a r Kha r k h a n a L t d ( 2 0 0 8 ) 228 ELT 172 (B om . ) Pa ymen t o f Sho r t Du t y / Unp a i d du t y b e f o r e i s s u a n c e o f s h ow c a u s e no t i c e do e s no t e x emp t a n a s s e s s e e f r om p a ymen t o f p e n a l t y u / s 11AC . S t e r l i t e Op t i c a l Te c h n o l o g i e s L t d 2008 ( 2 2 5 ) 430 (B om . ) Quantum of Penalty u/s 11AC: Onc e c o n d i t i o n s r e q u i r e d by S e c t i o n 11AC a r e fu l f i l l ed ,

Dep a r tme n t a l Au t h o r i t i e s h a v e no d i s c r e t i o n t o impo s e p e n a l t y l owe r t h a n 100% o f t h e du t y s h o r t l ev i ed / sho r t pa id . Au r a n g a b a d Mo to r Manu f a c t u r e r s L t d 2008 ( 2 2 4 ) ELT 534 (B om . ) 4.5 AP PEALS AND R ISIONS EV Case Gist Citation Whe r e Rev e n u e f a i l e d t o s a t i s f y t h a t t h e s i g n a t o r i e s t o t h e r e v i ew o r d e r we r e a u t h o r i z e d a u t h o r i t i e s , t h e a c t o f r e v i ew wa s a b i n i t i o vo i d . CCEx v s . Or e s I n d i a Pv t . L t d 2008 (CESTAT ) I n v o l v emen t o f Cu s t oms Hou s e Agen t (CHA ) c a n n o t b e r u l e d ou t when t h e r e i s a concu r r en t f i n d i n g a g a i n s t CHA by a l l f a c t f i nd ing au tho r i t i e s . Kwi c k Hand l i n g Se r v i c e Pv t . L t d . Vs . J o i n t Se c r e t a r y o f F i n a n c e ( 2 0 0 8 ) (HC ) Di s p o s a l o f a p p e a l s by me r e r e f e r e n c e t o d e c i s i o n s wi t h o u t a n a l y z i n g t h e spec i a l f e a t u r e s o f each c a s e , i s no t p r o p e r . J u d g e s i n t e r p r e t s t a t u e s , t h e i r wo r d s c anno t be i n t e r p r e t e d a s s t a t u t e s . CCE v s . S r i k uma r Agen c i e s 2008 ( 2 3 2 ) ELT 577 ( SC )

Eve n Dep a r tmen t i s r e q u i r e d t o s t a t e r e a s o n s f o r d e l a y wh i l e f i l i n g a p p l i c a t i o n f o r c o n do n a t i o n o f d e l a y wi t h CESTAT . T r i b u n a l c a n n o t i n v en t any r e a s on and g r an t c o n do n a t i o n . CCEx . , Chenn a i v s CEGAT 2009 ( 2 3 6 ) ELT 21 (Mad ) CCCE s d i r e c t i o n s f o r mak i n g p a r t i c u l a r a s s e s smen t i s on l y a gu i d e l i n e a n d no t a mand a t e t o b e ob e y e d i n e a c h a s s e s smen t Va r s h a P l a s t i c s Pv t . L t d . ( 2 0 0 9 ) 235 ELT 193 ( SC ) No extended period if only inaction: Ex t e n d e d p e r i o d no t i n v o c a b l e when t h e r e i s a me r e i n a c t i o n o r f a i l u r e on t h e p a r t o f manu f a c t u r e r . The r e mus t b e c o n s c i o u s o r de l i b e r a t e wi t h h o l d i n g o f i n f o rma t i o n by manu f a c t u r e r . Ne s t l e I n d i a L t d . ( 2 0 0 9 ) 235 ELT 577 ( SC ) Rectification of mistake not a question of law: Con s i d e r a t i o n o f a mi s t a k e a p p a r e n t f r om r e c o r d i s a qu e s t i o n o f f a c t . Thu s , i t c a n n o t b e t a k e n up f o r c o n s i d e r a t i o n by a Cou r t o f l aw . Da i s y T r a d i n g Co r p o r a t i o n

2009 ( 2 3 6 ) ELT 209 ( SC ) SC decision prevails over Circular: When t h e Sup r eme Cou r t h a s g i v e n a n i n t e rp re t a t ion t o a s t a t u t o r y p rov i s i on , su ch i n t e r p r e t a t i o n c a n n o t b e i g n o r e d on t h e ba s i s o f a con t r a r y i n t e r p r e t a t i on g iven i n t h e c i r cu l a r i s s u e d by t h e Boa r d . Pa n c h s h e e l Org a n i c s 2009 ( 2 3 7 ) ELT A50 ( SC ) No Notice Order not valid: No t i c e a n d hea r i ng a r e r equ i r ed a s pe r p r i nc ip l e s o f na tu r a l j u s t i c e . Whe r e a r e v i s i o n o r d e r wa s p a s s e d wi t h o u t i s s u i n g no t i c e t o p a r t i e s , o r d e r wa s s e t a s i d e , bu t p r o c e e d i n g s no t t e rm i n a t e d . Uma Na t h Pa nd e y Vs S t a t e o f U.P. 2009 ( 2 3 7 ) ELT 241 ( SC ) Case Gist Citation Suppression of fact not Substantial Question of Law: Supp r e s s i o n o f f a c t e s s e n t i a l l y a qu e s t i o n o f f a c t no t g i v i n g r i s e t o s u b s t a n t i a l qu e s t i o n o f l aw p e r s e . Sub s t a n t i a l qu e s t i o n o f l aw t o mean s ome t h i n g i n c o n t r a d i s t i n c t i o n wi t h t e c h n i c a l , o f no s u b s t a n c e / c o n s e q u e n c e o r a c a d em i c

me r e l y . Ku sh a l F e r t i l i s e r s ( P ) LTD . [ 2 0 0 9 ] 238 ELT 21 ( SC ) SCN by CCE(A): SCN i s s u e d by a d j u d i c a t i n g a u t h o r i t y i s no t t h e s ame a s t h e SCN r equ i r ed t o b e i s s u e d by t h e CCE (A ) u / s 35A ( 3 ) f o r d emand i n g a d d i t i o n a l du t y p a y a b l e by the assessee . Period of limitation not extendable by CCE(A): Condon a t i o n o f d e l a y on e x i s t e n c e o f s u f f i c i e n t c a u s e i s d i f f e r e n t f r om e x t e n d i n g p e r i o d o f l im i t a t i o n , f o r p a s s i n g t h e o r d e r by t h e a p p e l l a t e a u t h o r i t y , wh i c h i s o t h e rw i s e r e s t r i c t e d by t h e s t a t u t e . Pa t e l F i l t e r s L t d . 2009 241 ELT A95 ( SC ) No appeal to SC for issues not in show cause notice: Rev e n u e c a n n o t a r g u e a c a s e be fo r e t h e Sup r eme Cou r t wh i c h i s no t mad e ou t i n s h ow c a u s e no t i c e . Champd a n y I n d u s t r i e s L t d . ( 2 0 0 9 ) 241 ELT 481 ( SC ) Interference into lower court orders by SC: Con c u r r e n t f i n d i n g s by l owe r au tho r i t i e s a r e i n t e r f e r e d by t h e Sup r eme Cou r t on l y when t h e y a r e p a t e n t l y p e r v e r s e o r b a s e d on man i f e s t

mi s r e a d i n g o f a n y l e g a l p r o v i s i o n V. Cha rm i n a r NonWov e n s l td . ( 2 0 0 9 ) 241 ELT 494 ( SC ) T r i b u n a l i s t h e l a s t a u t h o r i t y on f a c t a n d i t i s no t p r o p e r f o r Apex Cou r t i n e x e r c i s e o f powe r t o d i s t u rb such f i nd ing s . UNI P r o d u c t s ( I ) L t d . ( 2 0 0 9 ) 241 ELT 491 ( SC ) Right of Surety in Appeal: L i a b i l i t y o f a s u r e t y i s c o e x t e n s i v e wi t h t h a t o f t h e impo r t e r , a n d h e s t e p s i n t o t h e s h o e s o f impo r t e r f o r a l l i n t e n t s a n d pu r p o s e s . Th e r e f o r e , i f t h e impo r t e r c a n cha l l e nge an o rd e r and f i l e an appe a l , t h e su r e t y i s a l so en t i t l ed t o f i l e an appea l . La l b h a i T r a d i n g Co . 2008 ( 2 2 9 ) ELT A27 Reference to Third Member: When r e f e r e n c e i s mad e t o t h e Th i r d Membe r , t h e Th i r d Membe r c a n on l y t a k e e i t h e r o f t h e v i ew s e x p r e s s e d by t h e Membe r s o f t h e Ben c h . He c a n n o t t a k e a v i ew d i f f e r e n t f r om bo t h t h e membe r s . Ke l k a r T r a d i n g Co r p o r a t i o n 2008 ( 2 2 3 ) ELT 382 (B om . )

An o r d e r a t t a i n s f i n a l i t y when t h e a s s e s s e e / d e p a r tmen t do e s no t c h a l l e n g e t h e CCE (App e a l s ) o r d e r by f i l i n g f u r t h e r a p p e a l b e f o r e t r i b u n a l . Th e r e f o r e , i t i s no t op e n t o T r i b u n a l t o p e rm i t t o r e a g i t a t e / r e o p e n t h e i s s u e on c e a g a i n b e f o r e i t i n p r o c e e d i n g s wh i c h a r i s e s ou t o f a n o r d e r g i v i n g e f f e c t t o t h e e a r l i e r o r d e r o f r emand . MIL I n d i a L t d 2008 ( 2 2 2 ) ELT 497 (A l l . ) Relevant Date for Filing of Appeal Order served on persons other than the Petitioners: No t i c e / Ord e r s a d d r e s s e d t o t h e P e t i t i o n e r s ( E x D i r e c t o r s o f a Company ) we r e s e r v e d on t h e f a c t o r y o f t h e Compan y , wh i c h wa s du l y r e c e i v e d by a n Au t h o r i z e d S i g n a t o r y a t t h e Fa c t o r y . Ord e r s o s e r v e d , c a n n o t b e c o n s i d e r e d a s s e r v e d on t h e Pe t i t i o n e r s , f o r d e t e rm i n i n g t im e l im i t f o r a p p e a l t o CESTAT . The p e t i t i o n e r s ob t a i n e d a c e r t i f i e d c o p y o f t h e o r d e r f r om t h e CCE . Th e da t e o f r e c e i p t o f such c e r t i f i e d copy s h a l l be t h e r e l e v an t da t e f o r p r e f e r r i n g an appea l t o CESTAT . RK Aga rwa l v s . CESTAT 2008

( 2 2 1 ) ELT 486 (A l l . ) Fa c e t o f s u f f i c i e n t c a u s e o f t h e L im i t a t i o n Ac t a p p l i e s a s S e c 35B ( 3 ) p r o v i d e s powe r t o t h e App e l l a t e T r i b u n a l t o a dm i t a n a p p e a l even a f t e r exp i r y o f t h e r e l e v an t pe r i od , i f i t i s s a t i s f i ed t h a t t h e r e wa s s u f f i c i e n t c a u s e f o r no t p r e s e n t i n g wi t h i n t h a t p e r i o d . Un iwo r t h Te x t i l e s L t d , CA J o u r n a l Nov 08 P ag e No 826 (BOM) I f f o r r e a s o n s b e yo nd t h e c o n t r o l o f t h e As s e s s e e , h e c o u l d no t a p p e a r be f o r e t h e Tr i buna l , t h e s ame c a n n o t b e a g r o u n d f o r r e j e c t i o n o f p e t i t i o n wh i c h wa s f i l e d by t h e As s e s s e e wi t h i n s u f f i c i e n t t im e . Noe l Ag r i t e c h L t d 2008 ( 2 2 4 ) ELT 224 (K a r . ) Sec 35B: Commi s s i o n e r Appe a l s h a s t h e powe r s t o f i l e a n a p p e a l b e f o r e CESTAT . When a p e r s o n i s s t a t u t o r i l y en t i t l ed t o de l ega t e powe r s t o f i l e a n a p p e a l on h i s b e h a l f , i t b e c ome s c l e a r t h a t t h e pe r son de l ega t i ng ha s t h e r i gh t t o f i l e an appe a l . Sh r e e Gan e s h Dye i n g & P t n g Work s 2008 ( 2 3 2 ) ELT 775 (Gu j . )

Power of Tribunal Direction vs. Impose Pre Condition: T r i b u n a l do e s no t h a v e a n y powe r t o impo s e p r e c o n d i t i o n wh i l e r em i t t i n g b a c k t h e ma t t e r t o t h e o r i g i n a l a u t h o r i t i e s . I t i s empowe r e d on l y t o g i v e d i r e c t i o n s t o o r i g i n a l a u t h o r i t y wh i l e r em i t t i n g b a c k . Na t i o n a l Oxyg e n L t d 2008 ( 2 3 1 ) ELT 4 11 (Mad . ) Time Limit: L im i t a t i o n p e r i o d f o r f i l i n g o f Re c t i f i c a t i o n o f Mi s t a k e (ROM) i s no t t h e t im e l im i t f o r d e c i d i n g t h e ROM. App l i c a t i o n f o r r e c t i f i c a t i o n f i l e d wi t h i n s p e c i f i e d t im e l im i t , c a n b e r e c t i f i e d , even i f su ch r e c t i f i c a t i on o rde r i s p a s s e d b e y o n d t h e t im e l im i t spec i f i ed . S r e e Ayy a n a r Spg . & Wvg . Mi l l s L t d 2008 ( 2 2 9 ) ELT 164 ( SC ) CESTAT i s no t c o r r e c t i n d i sm i s s i n g a n a p p e a l wi t h o u t s t a t i n g a n y r e a s o n . Nag r e e k a Fo i l s L t d ( 2 0 0 8 ) 227 ELT 348 (B om . ) Case Gist Citation Ord e r p a s s e d by CESTAT wi t h o u t c o n s i d e r i n g c a s e l aw s r e l i e d on by t h e p a r t y i s no t p r o p e r . S t a n l e k Eng i n e e r i n g Pv t . L t d .

( 2 0 0 8 ) 229 ELT 61 (B om . ) The f u n d amen t a l p r i n c i p l e on wh i c h p r o v i s i o n s o f Re c t i f i c a t i o n i s b a s e d i s t h a t no p a r t y s h o u l d s u f f e r on a c c o u n t o f a n y mi s t a k e c omm i t t e d by t h e T r i b u n a l . Hond a S i l k Powe r P r o d u c t s L t d ( 2 2 1 ) ELT 11 ( SC ) W aiver of Predeposit: Mer e a s s e r t i o n a b o u t undu e h a r d s h i p no t s u f f i c i e n t . Fo r a n ha rd sh ip t o b e u n du e , i t s h o u l d b e s h own t h a t p e r f o rman c e o f t h e r e q u i r emen t ( i . e . p a ymen t o f d e p o s i t ) i s ou t o f p r o p o r t i o n t o t h e n a t u r e o f r e q u i r emen t ( u n d e r l y i n g du t y l i ab i l i ty ) I n d u Ni s s a n Oxo Chem i c a l s I n d i a L t d (SC) (200 7 ) T IOL 225 ; 2008 ( 2 2 1 ) ELT 7 ( SC ) Refund of PreDeposit: When t h e c a s e i s d e c i d e d i n f a v o u r o f t h e As s e s s e e , h e i s en t i t l ed t o t h e r e f u n d o f p r e d e p o s i t . I t s h o u l d no t b e h e l d b a c k b e c a u s e Rev e n u e h a s p r e f e r r e d an appe a l aga i n s t t h e CESTAT Ord e r s . Mode r n I n d u s t r i a l En t e r p r i s e s 2008 ( 2 2 6 ) ELT 695 (D e l . )

I f bo t h t h e a u t h o r i t i e s b e l ow h a v e h e l d t h a t t h e r e i s no un j u s t e n r i c hmen t a n d qu e s t i o n o f l aw f r amed by Rev e n u e do e s no t a r i s e f o r c o n s i d e r a t i o n b e f o r e High Cou r t , no s u b s t a n t i a l qu e s t i o n o f l aw a r i s e s i n a p p e a l Mo to r o l a I n d i a Pv t L t d . 2008 ( 2 2 1 ) E .L . T . 489 (K a r . ) NonF i l i n g o f a p p e a l s i n s im i l a r c a s e s do e s no t b a r f i l i n g o f a p p e a l i n a n o t h e r c a s e . The r e v e n u e may no t p r e f e r a p p e a l i n c e r t a i n c a s e s on t h e s ame / s im i l a r i s s u e s , b e c a u s e o f po l i c y d e c i s i o n s , sma l l amoun t i n v o l v e d o r r e v e n u e neu t r a l s i t u a t i o n s . CK Gang a d h a r a n v s . CIT 2008 ( 2 2 8 ) ELT 497 ( SC ) Fresh Plea: P l e a no t t a k e n b e f o r e T r i b u n a l o r High Cou r t no t a l l owab l e f o r t h e f i r s t t im e i n Sup r eme Cou r t . Th i s i s e v e n i f t h e a s s e s s e e con t end s t h a t r e l e v an t f a c t s we r e no t known b e f o r e . Anil Mishra 2008 (230) EL 583 (SC) T Departmental Clarification vs. Court Decisions: Dep a r tme n t c a n f i l e a n a p p e a l t a k i n g g r ound

con t r a r y t o i t s c i r c u l a r . A c i r c u l a r con t r a r y t o s t a t u t o r y p rov i s i on s ha s no e x i s t e n c e i n l aw . Ra t a n Me l t i n g & Wi r e I n d u s t r i e s 2008 ( 2 3 1 ) ELT 22 ( SC ) Irregular vs. Illegal orders: Irregular Orders: Whe r e a n a u t h o r i t y l a c k e d j u r i s d i c t i o n i n mak i n g a n o rde r , such o rde r i s nu l l a n d vo i d a b i n i t i o . The y c a n n o t b e r e c t i f i e d e v e n wi t h t h e c o n s e n t o f t h e pa r t i e s . Illegal Orders: When a n a u t h o r i t y e x e r c i s e d j u r i s d i c t i o n i n a wrong mann e r , o r d e r wou l d no t b e nu l l . I t c a n b e c u r e d i n a du l y con s t i t u t e d l e g a l p ro c e ed i ng . Deep a k Ag r o Food s ( 2 0 0 8 ) 228 ELT 510 ( SC ) An o r d e r p a s s e d a n d s i g n e d c a n n o t b e c h a n g e d on a n y c i r c ums t a n c e s , p a r t i c u l a r l y wi t h o u t a n y no t i c e t o a n y o f t h e p a r t i e s t o t h e case . Dink e r Kh i n d e r i a ( 2 0 0 8 ) 229 ELT 63 (D e l . ) 4.6 SETTLE ENT COM ISSION M M Case Gist Citation

Se t t l emen t c omm i s s i o n i s e n t i t l e d t o r e j e c t t h e r e c t i f i c a t i o n o f mi s t a k e a p p l i c a t i o n , f i l e d on t h e b a s i s o f a Sup r eme Cou r t j u d g emen t wh i c h wa s d e b a t a b l e . Se t t l emen t Commi s s i o n v s . CIT 2009 ( 2 3 4 ) ELT 584 (K e r . ) Assessees claim not considered Order invalid: Whe r e c o u n t e r c l a im o f a s s e s s e e wa s no t v e r i f i e d by t h e Se t t l emen t Commi s s i o n b e f o r e p a s s i n g a n Ord e r a g a i n s t t h e a s se s see , t h e o rde r i s no t v a l i d . J a i J a g d amb a Ma l l e a b l e ( P ) 2009 ( 2 3 7 ) ELT 240 ( SC ) Rejection of Application: Se t t l emen t Commi s s i o n cannot reject a n a p p l i c a t i o n on t h e f o l l ow i n g g r ound s Con t e n t i o n o f App l i c a n t i s v e r y l eng thy I s s u e i s c omp l i c a t e d on e on l e g a l , p ro cedu r a l , t e c hn i c a l and ev i d en t i a r y po i n t s . Amoun t a c c e p t e d b y t h e p e t i t i o n e r s i s v e r y l ow Sh r i Renug a So f t X Towe l s 2008 ( 2 2 9 ) ELT 359 (Mad . )

Se t t l emen t Commi s s i o n do e s no t h a v e a n y j u r i s d i c t i o n / powe r t o wa i v e t h e amoun t o f i n t e r e s t p a y a b l e und e r a bond e x e c u t e d b e f o r e Di r e c t o r Gen e r a l o f Fo r e i g n T r a d e (DGFT ) . Rexno r d E l e c t r o n i c s & Con t r o l s L t d v s . UOI 2008 ( 2 2 4 ) ELT 184 ( SC ) On l y when t h e Se t t l emen t Commi s s i o n i s s a t i s f i e d t h a t t h e a p p l i c a n t h a d mad e f u l l and t r u e d i s c l o su r e , t h e app l i c a t i o n cou l d be a dm i t t e d a n d p r o c e e d e d wi t h . E l s e , i t c an r e j e c t t h e app l i c a t i o n . Mar s The a p e u t i c s & Chem . L t d . ( 2 0 0 8 ) 223 ELT 363 (HC )

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