Case Law Details
Bata India Limited Vs Commissioner of Central Excise (CESTAT Kolkata)
CESTAT Kolkata held that based on Doctrine of Substantial Compliance, exemption benefit of notification no. 23/2004 dated 09.07.2004 and 5/2006 dated 01.03.2006 cannot be denied.
Facts- The Appellant M/s. Bata (I) Ltd. manufactures footwear. Each pair of footwear is sold in packaged form. The assessee follows the system of assigning a 7-digit article number for its footwear. In respect of footwear, which passes the quality control inspection at the end of the assembly line, the 7-digit article number denotes the group, type, nature of basic upper material, color, mutation, and design number. The 7-digit article number and the MRP of the footwear are printed on the insole or on the upper lining of the footwear at the component stage itself.
In respect of footwear that has failed quality control inspection at the end of the assembly line and has to be treated as ‘Factory Seconds’.
It is the case of the Appellant that they are availing the benefit of exemption Notification No.23/2004 dated 09.07.2004 and 5/2006 dated 01.03.2006. The Notifications provide a concessional rate of duty depending on the value of the footwear subject to the condition that the rejected sale price is indelibly marked or embossed on the footwear.
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