BAJAJ AUTO LIMITED versus UNION OF INDIA & ORS.

BAJAJ AUTO LIMITED versus UNION OF INDIA & ORS.

Once the excise duty is exempted under a notification, Education Cess, Secondary & Higher Education Cess, and NCCD, which are in the nature of surcharges or additional duties of excise, cannot be separately levied. The exemption extends to the entire class of excise duties, as clarified by judicial interpretation and government circulars. Therefore, the manufacturer is not liable for the cesses or NCCD for the period of exemption.

Parties
Appellant: Bajaj Auto Limited; Respondents: Union of India & Ors.
Jurisdiction
India
Judgment Date
27 March 2019
Procedural Posture
Civil Appeal / Supreme Court Appeal From High Court Judgment/order
Outcome
Appeal allowed
Legal Topics
Central Excise Exemption, Levy of National Calamity Contingent Duty, Education Cess, Secondary & Higher Education Cess, Interpretation of Exemption Notifications
Tax Law Excise Law Administrative Law Central Excise Exemption Levy of National Calamity Contingent Duty Education Cess Secondary & Higher Education Cess Interpretation of Exemption Notifications

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 3 Authorities cited 10 Party arguments 2
Sign in to unlock

Parties

Bajaj Auto Limited

Appellant

Union of India & Ors.

Respondents

Procedural Posture

Civil Appeal / Supreme Court Appeal From High Court Judgment/order

Legal Issues

  1. 1 Whether a manufacturer exempt from Central Excise Duty under a notification is also exempt from National Calamity Contingent Duty (NCCD), Education Cess, and Secondary & Higher Education Cess.

Ratio Decidendi

Once the excise duty is exempted under a notification, Education Cess, Secondary & Higher Education Cess, and NCCD, which are in the nature of surcharges or additional duties of excise, cannot be separately levied. The exemption extends to the entire class of excise duties, as clarified by judicial interpretation and government circulars. Therefore, the manufacturer is not liable for the cesses or NCCD for the period of exemption.

Court Disposition

Appeal allowed

Orders

  • Impugned orders of the High Court are set aside.
  • Show cause notice dated 26.8.2011 is quashed.