ALUMINIUM CORPORATION OF INDIA LTD. versus UNION OF INDIA & ORS.

ALUMINIUM CORPORATION OF INDIA LTD. versus UNION OF INDIA & ORS.

Exemption/rebate under the notification is to be given pro tanto for the proportion of duty paid aluminium used in manufacturing finished products, and is not denied merely because finished goods are also made with some non-duty paid aluminium. The Revenue's exclusion of such cases is not supported by the notification and the assessee is entitled to refund on overpaid excise duty for the extent attributable to duty paid aluminium.

Parties
Appellant: Aluminium Corporation of India Ltd.; Respondents: Union of India & Ors.
Jurisdiction
India
Judgment Date
22 August 1975
Procedural Posture
Civil Appeal / Appeal by Special Leave From Judgment/order of Government of India, Central Excise, Dated 21st August, 1967
Outcome
Appeal allowed with costs.
Legal Topics
Exemption Notification, Excise Duty, Manufacture From Duty Paid Goods
Taxation Central Excise Exemption Notification Excise Duty Manufacture From Duty Paid Goods

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 5 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Aluminium Corporation of India Ltd.

Appellant

Union of India & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal by Special Leave From Judgment/order of Government of India, Central Excise, Dated 21st August, 1967

Legal Issues

  1. 1 Whether exemption at concessional rate is denied where end products are manufactured partly out of duty paid and partly out of non-duty paid aluminium
  2. 2 Proper interpretation of Central Government Notification No. 66/60 dated 20-4-1960 under Rule 8(1) of the Central Excise Rules, 1944

Ratio Decidendi

Exemption/rebate under the notification is to be given pro tanto for the proportion of duty paid aluminium used in manufacturing finished products, and is not denied merely because finished goods are also made with some non-duty paid aluminium. The Revenue's exclusion of such cases is not supported by the notification and the assessee is entitled to refund on overpaid excise duty for the extent attributable to duty paid aluminium.

Court Disposition

Appeal allowed with costs.

Orders

  • Respondents to refund over-levied excise duty to the appellant to the extent found due as per the exemption notification.