CC (PREVENTIVE) AMRITSAR versus M/S. MALWA INDUSTRIES LTD

CC (PREVENTIVE) AMRITSAR versus M/S. MALWA INDUSTRIES LTD

If excise duty is not leviable on manufacture of goods due to an exemption notification, then no additional duty is payable on import of like goods. The requirement that goods be used in the 'same factory' refers to the factory belonging to the importer; imported goods need not be manufactured in the same factory, only used there. Interpretation should avoid absurdity and should consider statutory purpose.

Parties
Appellant: CC (Preventive) Amritsar; Respondent: M/s. Malwa Industries Ltd
Jurisdiction
India
Judgment Date
12 February 2009
Procedural Posture
Civil Appeal / Final Judgment
Outcome
Appeals dismissed
Legal Topics
Additional Duty, Exemption Notification, Interpretation of Statutes, Customs Tariff Act 1975, Notification No. 4/2006 CE
Customs Law Tax Law Additional Duty Exemption Notification Interpretation of Statutes Customs Tariff Act 1975 Notification No. 4/2006 CE

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Parties

CC (Preventive) Amritsar

Appellant

M/s. Malwa Industries Ltd

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether 'nil' rate of duty in Notification No. 4/2006-CE dated 1.03.2006 allows exemption from additional duty under Customs Tariff Act, 1975 when imported goods are used in the factory of the importer.
  2. 2 Whether imported goods must be manufactured in the same factory to claim exemption.

Ratio Decidendi

If excise duty is not leviable on manufacture of goods due to an exemption notification, then no additional duty is payable on import of like goods. The requirement that goods be used in the 'same factory' refers to the factory belonging to the importer; imported goods need not be manufactured in the same factory, only used there. Interpretation should avoid absurdity and should consider statutory purpose.

Court Disposition

Appeals dismissed

Orders

  • Appeals dismissed with costs; Counsel's fee assessed at Rs. 50,000/-