M/S. GOPAL ZARDA UDYOG AND ORS. versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI

M/S. GOPAL ZARDA UDYOG AND ORS. versus COMMISSIONER OF CENTRAL EXCISE, NEW DELHI

The 'additive mixture' (kimam) manufactured by the appellants was excisable and classifiable under Chapter sub-heading 2404.49/2404.40 of the Central Excise Tariff Act, 1985. However, the extended period of limitation under the proviso to Section 11-A(1) of the Central Excise Act, 1944 cannot be invoked in this case as there was no intent to evade payment of duty and the department was aware of the facts and records maintained by the appellants.

Parties
Appellants: MIS. GOPAL ZARDA UDYOG AND ORS.; Respondent: COMMISSIONER OF CENTRAL EXCISE, NEW DELHI
Jurisdiction
India
Judgment Date
30 September 2005
Procedural Posture
Civil Appeal / Supreme Court Final Decision
Outcome
Appeal partly allowed
Legal Topics
Excisability, Tariff Classification, Extended Period of Limitation, Notification Exemption
Taxation Central Excise Excisability Tariff Classification Extended Period of Limitation Notification Exemption

Case Brief

Summary, issues, holding and outcome

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Parties

MIS. GOPAL ZARDA UDYOG AND ORS.

Appellants

COMMISSIONER OF CENTRAL EXCISE, NEW DELHI

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Decision

Legal Issues

  1. 1 Whether the 'additive mixture' processed by the appellants was excisable and classifiable under sub-heading 2404.49/2404.40 of Central Excise Tariff Act, 1985
  2. 2 Whether the department was right in invoking the extended period of limitation under the proviso to Section 11-A(1) of the Central Excise Act, 1944

Ratio Decidendi

The 'additive mixture' (kimam) manufactured by the appellants was excisable and classifiable under Chapter sub-heading 2404.49/2404.40 of the Central Excise Tariff Act, 1985. However, the extended period of limitation under the proviso to Section 11-A(1) of the Central Excise Act, 1944 cannot be invoked in this case as there was no intent to evade payment of duty and the department was aware of the facts and records maintained by the appellants.

Court Disposition

Appeal partly allowed

Orders

  • 'Additive mixture' (kimam) is excisable and classifiable under 2404.49/2404.40 of the Central Excise Tariff Act, 1985.
  • Department not entitled to invoke extended period of limitation under Section 11-A(1) proviso.