Case Law Details
Sudhir Power Ltd. Unit-III Vs CCE & ST- Jammu and Kashmir (CESTAT Chandigarh)
It is a fact on record that the appellant is manufacturing DG sets and enclosures which are dutiable under Chapter 85 of CETA 1985. The appellant is also clearing goods to the buyers under SFIS Scheme duty free in terms of the Notification No. 34/2006-CE dated 14.06.2006. Therefore, the issue before this Tribunal is whether the goods cleared under Notification No. 34/2006-CE dated 14.06.2006 under SFIS Scheme are exempted or not? It is an admitted position by both sides that the goods in question manufactured by the appellant are dutiable under Chapter 85 of the CETA, 1985.
Further, the similar issue came up before this Tribunal in the case of Kirloskar Chillers Pvt. Ltd. (supra), this Tribunal has following the decision in the case of M/s Voltamp Transformers Ltd. (supra) hold that the goods supplied under Notification No. 34/2006-CE dated 14.06.2006 is not exempted, therefore, the provisions of Rule 6 (3) (b) of CCR, 2004 are not applicable.
In the case of. Ind-Swift Laboratories Ltd. (supra) wherein the Hon’ble Apex Court is clarities that ‘the taxing statute must be interpreted in the light of what is clearly expressed. It is not permissible to import provisions in taxing statute so as to supply any assumed deficiency’. It means that the dutiable goods cannot become exempted goods as per the convenience of the revenue. Further, in the case of Dhiren Chemical Industries (supra) the Hon’ble Apex Court has held that the Circular issued by the CBEC is binding on the Revenue, but, not on the assessee. Moreover, the circular which has been relied by the revenue have no mention of notification in question and the Revenue has presumed that if the notification in question is not part of the Circular No. 973/07/2013-CX dated 04.09.2013 then the provisions of Rule 6 (3) is applicable. The said understanding of the revenue is against the mandate of law as it is based of assumption & presumption. Therefore, it is a clear mis-interpretation of the Revenue by interpreting the CBEC Circular dated 04.09.2013 in contravening of the decision of the Hon’ble Apex Court in the case of Ind-Swift Laboratories Ltd. (supra).
In view of the above discussions and observations, I hold that the goods supplied under Notification No. 34/2006-CE dated 14.06.2006 under SFIS Scheme are dutiable and not exempted goods, therefore, the provisions of Rule 6 (3) of the CCR, 2004 are not applicable to the facts of this case.
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