Case Law Details
Commissioner, Central Excise and Customs and Another Vs Reliance Industries Ltd. (Supreme Court of India)
The Hon’ble Supreme Court in Commissioner of Central Excise and Service Tax v. M/s Reliance Industries Ltd. [Civil Appeal No. 6033 of 2009 dated July 04, 2023] held that the assessee was bonafide and has correctly discharged duty liability by relying on the CESTAT decision even though the same was later overturned by the Hon’ble Supreme Court.
Facts:
M/s. Reliance Industries Ltd. (“the Respondent”) on the basis of the CESTAT judgment IFGL Refractories Ltd v. Commissioner of central excise, [2001 (134) ELT 230] wherein it was held that duty benefits received by the assessee under the exemption scheme cannot be considered as part of the consideration flowing from the buyer, either directly or indirectly.
However, the judgement of the CESTAT was overturned by the Hon’ble Supreme Court in the case of IFGL Refractories Ltd. on August 09, 2005 and held that monetary value of duty benefits obtained by the customers constituted additional consideration flowing to the assessee from the customers.
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