M/S. ESCORTS LTD. versus COMMNR. OF CENTRAL EXCISE, FARIDABAD

M/S. ESCORTS LTD. versus COMMNR. OF CENTRAL EXCISE, FARIDABAD

Transmission Assemblies that emerge as distinct, commercially known products during tractor manufacture are excisable goods, regardless of whether they are sold. However, in the absence of suppression or intent to evade duty, the extended limitation period under Section 11-A of the Central Excise Act is not available to the Revenue.

Parties
Appellant: M/S. Escorts Ltd.; Respondent: Commissioner of Central Excise, Faridabad
Jurisdiction
India
Judgment Date
29 April 2015
Procedural Posture
Civil Appeal / Appeals From Customs, Excise & Service Tax Appellate Tribunal Orders
Outcome
Appeals Allowed; Revenue Appeals Dismissed
Legal Topics
Excise Duty on Intermediate Goods, Marketability Criterion, Limitation Period for Excise Demands
Tax (central Excise) Constitutional Law Excise Duty on Intermediate Goods Marketability Criterion Limitation Period for Excise Demands

Case Brief

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Parties

M/S. Escorts Ltd.

Appellant

Commissioner of Central Excise, Faridabad

Respondent

Procedural Posture

Civil Appeal / Appeals From Customs, Excise & Service Tax Appellate Tribunal Orders

Legal Issues

  1. 1 Is excise duty payable on 'Transmission Assembly' (an intermediate product) manufactured during the manufacture of tractors?
  2. 2 Does the extended period of limitation apply when there is no suppression or intent to evade duty?

Ratio Decidendi

Transmission Assemblies that emerge as distinct, commercially known products during tractor manufacture are excisable goods, regardless of whether they are sold. However, in the absence of suppression or intent to evade duty, the extended limitation period under Section 11-A of the Central Excise Act is not available to the Revenue.

Court Disposition

Appeals Allowed; Revenue Appeals Dismissed

Orders

  • Judgments of CESTAT set aside; show cause notices quashed on grounds of limitation.
  • No excise duty recoverable for disputed period due to limitation.