BILT Graphics Paper Products Ltd Vs Commissioner of Central Excise (CESTAT Mumbai)
BILT Graphics Paper Products Ltd challenged an order of the Commissioner of Central Excise, Wardha, seeking recovery of central excise duty of ₹3.06 crore under Section 11A of the Central Excise Act, 1944, along with interest and a penalty of equal amount under Sections 11AB and 11AC. The dispute arose from the treatment of sales tax collected under the Maharashtra State Government’s deferred payment scheme, part of its 1993 Package Scheme of Incentives. Under this scheme, manufacturers could defer payment of sales tax for ten years, with an option introduced in 2002 to discharge the accumulated liability earlier at its net present value (NPV). The appellant had exercised this NPV option, paying ₹59.79 crore and retaining ₹54.02 crore in accordance with the scheme. The Revenue argued that the retained amount was not eligible for abatement under Section 4(3)(d) of the Central Excise Act and therefore should be included in the transaction value for excise duty.
The appellant contended that the issue was resolved by Tribunal precedents, including reliance on the Supreme Court’s ruling in Super Synotex (India) Ltd (2014), and pointed out that the amount in question had already been discharged via CENVAT credit in May 2015. The key issue was whether excise duty could be levied on deferred sales tax that had been paid or was payable in accordance with the incentive scheme.
