Case Law Details
Emerson Process Management Chennai P Ltd Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that goods have been supplied against the international competitive bidding and hence there is no obligation under Rule 6(6) of CCR 2004. Accordingly, duty not payable on intermediate products.
Facts- During the course of verification of accounts for the different periods, it was noticed that the appellant had manufactured and supplied control valves to Mega Power Projects without payment of Excise Duty under Notification No.6/2006- CE dt. 1.3.2006 as amended.
During the manufacture of control valves three sub-assemblies namely (a) Body Assembly (b) Actuator Assembly and (c) Digital Valve Controller emerge. On perusal of the sales invoices, it was revealed that the said sub-assemblies are cleared as Plug/ Stem assembly, FSDVC, Positioner Assembly etc. It was clear that the said sub-assemblies are intermediate goods having distinct name, tariff classification, known to the market as goods, and having marketability for being bought and sold.
It was noticed that some of the subassemblies were also cleared as such without payment of duty under Notification No.6/2006-CE, apart from clearing sub-assemblies without payment of duty which were captively consumed for the manufacture of the final products. It appeared to the department that the benefit of Notification 67/95-CE dt. 16.03.1995 is not available to the appellants as the final products are exempted from the whole of duty of excise.
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