COLLECTOR OF CENTRAL EXCISE versus USHA MARTIN INDUSTRIES

COLLECTOR OF CENTRAL EXCISE versus USHA MARTIN INDUSTRIES

The benefit of exemption under the relevant notification is legitimately available even where the raw materials are not subject to excise duty, and the expression 'on which appropriate amount of duty of excise has already been paid' should not be narrowly construed to exclude cases where nil duty was paid....

Source-derived case information.

Parties
Appellant: Collector of Central Excise; Respondent: Usha Martin Industries Ltd.
Jurisdiction
India
Judgment Date
28 August 1997
Procedural Posture
Civil Appeal / Appeal From Customs, Excise & Gold (control) Appellate Tribunal, New Delhi
Outcome
appeals dismissed
Legal Topics
Interpretation of Exemption Notifications, Binding Effect of Departmental Circulars
Tax Law Excise Law Interpretation of Exemption Notifications Binding Effect of Departmental Circulars

Source-derived case record

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 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Collector of Central Excise

Appellant

Usha Martin Industries Ltd.

Respondent

Procedural Posture

Civil Appeal / Appeal From Customs, Excise & Gold (control) Appellate Tribunal, New Delhi

Legal Issues

  1. 1 Whether benefit of excise duty exemption under notification dated 30.11.1963 as amended up to 7.4.1981 is available when raw materials used in manufacture of goods are not exigible to excise duty
  2. 2 Interpretation of expression 'on which appropriate amount of duty of excise has already been paid' in exemption notifications
  3. 3 Binding effect of Central Board of Excise and Customs circulars issued prior to Section 37-B insertion

Ratio Decidendi

The benefit of exemption under the relevant notification is legitimately available even where the raw materials are not subject to excise duty, and the expression 'on which appropriate amount of duty of excise has already been paid' should not be narrowly construed to exclude cases where nil duty was paid. Departmental circulars issued to clarify this interpretation are binding on the Revenue.

Court Disposition

appeals dismissed

Orders

  • Benefit of exemption from duty is available where raw materials used in manufacture are not exigible to excise duty.
  • All appeals by the Revenue are dismissed.