Sponsored
    Follow Us:

Case Law Details

Case Name : Commissioner of Central Excise Belapur Vs Jindal Drugs Ltd. (Supreme Court of India)
Appeal Number : Civil Appeal No. 1121 of 2016
Date of Judgement/Order : 30/04/2024
Related Assessment Year :
Become a Premium member to Download. If you are already a Premium member, Login here to access.
Sponsored

Commissioner of Central Excise Belapur Vs Jindal Drugs Ltd. (Supreme Court of India)

The Supreme Court recently addressed a crucial question regarding the Central Excise Act: Does labelling or re-labelling containers constitute ‘manufacture’ for CENVAT credit eligibility? This question arose in the case of Commissioner of Central Excise Belapur vs Jindal Drugs Ltd., which had significant implications for taxation and regulatory compliance.

The crux of the matter revolved around the interpretation of Note 3 to Chapter 18 of the Central Excise Tariff Act. This note specifies activities that qualify as ‘manufacture,’ including labelling or re-labelling of containers. The Court examined the legislative intent behind this provision, noting a crucial amendment made in 2008.

Pre-amendment, the note required a composite process of labelling/re-labelling and repacking to constitute ‘manufacture.’ However, post-amendment, the amendment replaced ‘and’ with ‘or,’ expanding the scope. Now, labelling or re-labelling of containers alone qualifies as ‘manufacture,’ distinct from repacking.

The Court carefully analyzed the language of the statute and legislative history, concluding that labelling constitutes an independent manufacturing activity.

Please become a Premium member. If you are already a Premium member, login here to access the full content.

Sponsored

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Sponsored
Sponsored
Search Post by Date
July 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031