COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH versus M/S SUPREME FABRICS LTD.

COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH versus M/S SUPREME FABRICS LTD.

The Tribunal correctly held that loading charges collected should be treated as cum-duty price and the demand for duty must be calculated after allowing abatement for excise duty payable, as supported by Srichakra Tyres Ltd. and confirmed by Supreme Court dismissal of Department's appeals.

Parties
Appellant: Commissioner of Central Excise, Chandigarh; Respondent: Mis Supreme Fabrics Ltd.
Jurisdiction
India
Judgment Date
12 December 2007
Procedural Posture
Civil Appeal / Final Order
Outcome
appeal dismissed
Legal Topics
Assessable Value, Cum Duty Price, Abatement of Excise Duty, Loading Charges
Taxation Central Excise Assessable Value Cum Duty Price Abatement of Excise Duty Loading Charges

Case Brief

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Parties

Commissioner of Central Excise, Chandigarh

Appellant

Mis Supreme Fabrics Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Order

Legal Issues

  1. 1 Whether loading charges collected by the assessee are liable to be treated as cum-duty price and whether the Department is obliged to allow abatement for central excise duty payable on such loading charges under Section 4(4)(d)(ii) of the Central Excise Act, 1944

Ratio Decidendi

The Tribunal correctly held that loading charges collected should be treated as cum-duty price and the demand for duty must be calculated after allowing abatement for excise duty payable, as supported by Srichakra Tyres Ltd. and confirmed by Supreme Court dismissal of Department's appeals.

Court Disposition

appeal dismissed

Orders

  • The civil appeal is dismissed with no order as to costs.