Case Law Details
Sandoz Private Limited Vs Union of India (Supreme Court of India)
The Supreme Court of India in the matter of Sandoz Private Limited v. Union of India [Civil Appeal No. 3358 of 2020 dated January 4, 2022] upheld the decision of the Bombay High Court that Export Oriented Unit (EOU) is not entitled to claim refund of Terminal Excise Duty (TED) on its own, however, adds a caveat that EOU may avail of the entitlements of Domestic Tariff Area (DTA) supplier specified in Chapter 8 of Foreign Trade Policy (FTP) on condition that it will not pass on that benefit back to DTA supplier later on.
Facts:
M/s Sandoz Private Limited (Appellant) claims to be hundred per cent EOU engaged in the manufacture of goods falling under Chapter 30 of the Schedule to the Central Excise Tariff Act, 1985.
The Appellant had applied for refund from TED in respect of excisable goods procured from its unit in DTA, as it did in the past and was granted refund from time to time between 2006 and 2012. The instant refund application was disallowed, which decision is the subject matter of appeal in the present case. It is known that TED was paid by the DTA Unit from where the goods in question were procured or supplied to the Appellant for its EOU during the relevant period.
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