M/S. B.P.L. INDIA LTD. versus COMMISSIONER OF CENTRAL EXCISE, COCHIN

M/S. B.P.L. INDIA LTD. versus COMMISSIONER OF CENTRAL EXCISE, COCHIN

Assembly of imported kits into VTRs/colour monitors by use of fasteners gives rise to a new product with distinct character and use, thus constituting manufacture under Section 2(f) and attracting excise duty on the end product. Longer period of limitation is applicable due to appellant’s conduct in not intimating clearance and delaying response to show cause notices.

Parties
Appellant: M/S. B.P.L. INDIA LTD.; Respondent: COMMISSIONER OF CENTRAL EXCISE, COCHIN
Jurisdiction
India
Judgment Date
07 May 2002
Procedural Posture
Civil Appeal / Supreme Court Final Decision
Outcome
appeal dismissed
Legal Topics
Excise Duty, Manufacture Definition, Limitation Period, Countervailing Duty
Taxation Excise Law Excise Duty Manufacture Definition Limitation Period Countervailing Duty

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Parties

M/S. B.P.L. INDIA LTD.

Appellant

COMMISSIONER OF CENTRAL EXCISE, COCHIN

Respondent

Procedural Posture

Civil Appeal / Supreme Court Final Decision

Legal Issues

  1. 1 Whether assembly of imported kits into VTRs/colour monitors constitutes 'manufacture' under Section 2(f) of Central Excises and Salt Act, 1944
  2. 2 Whether excise duty is payable on the assembled end product despite payment of countervailing duty on imported kits
  3. 3 Whether the longer period of limitation under Section 11A is available to the Revenue

Ratio Decidendi

Assembly of imported kits into VTRs/colour monitors by use of fasteners gives rise to a new product with distinct character and use, thus constituting manufacture under Section 2(f) and attracting excise duty on the end product. Longer period of limitation is applicable due to appellant’s conduct in not intimating clearance and delaying response to show cause notices.

Court Disposition

appeal dismissed

Orders

  • Appellant liable to pay duty on the end product
  • Longer period of limitation available to Revenue