Commissioner of Central Excise and Customs, Bangalore vs M/s Jsw Steel Ltd.

Court

Supreme Court of India

Date

9 April 2019

Case No.

Civil Appeal No.531 of 2008

Result

Dismissed

Bench

S.A. Bobde, Deepak Gupta, Vineet Saran

Citation

[2019] 6 S.C.R. 938 : 2019 INSC 478

Headnote

Central Excise Act, 1944 – ss.4 and 11AB – Respondent manufactured Pig Iron and HR Coil Sheets, falling under Chapter 72, 1985 Act – While selling the goods, invoices were raised on the price of goods plus ‘Dharmada’, a charitable donation from customers, which was credited to charity – Show cause notice issued by the Deputy Commissioner, Central Excise and Customs, Bellary calling upon the Respondent to show cause as to why penalty u/r.25, 2002 Rules and interest u/s.11AB, 1944 Act be not levied – Deputy Commissioner held that the Dharmada is to be added to the assessable value for the payment of central excise duty – Commissioner (Appeals) confirmed the order – CESTAT set aside the order – On appeal, held: Present case has been tagged with M/s. D.J. Malpani vs. Commissioner of Central Excise, Nashik, [2019]

6 SCR 925 wherein it was held that the amount of Dharmada cannot be included in the transaction value for the purposes of assessments – In view of the said judgment, the present appeal is dismissed – Central Excise Rules, 2002 – r.25 – Central Excise Tariff Act, 1985 – Chapter 72.

Dismissing the appeal, the Court

HELD: 1.1 The present case has been tagged with the case of M/s D.J. Malpani vs. Commissioner of Central Excise, Nashik which was referred to this Bench vide order dated 29.07.2015. It was held that the amount of Dharmada cannot be included in the transaction value for the purposes of assessments. In view of the judgment in the case of Civil Appeal No. 5282 of 2005, M/s D.J. Malpani vs. Commissioner of Central Excise, Nashik, the present appeal is dismissed. [Paras 5, 6][940-D-E]

M/s D.J. Malpani vs. Commissioner of Central Excise, Nashik [2019] 6 SCR 925 – relied on.

Collector v. Panchmukhi Engineering Works (2003)

(158) ELT 550 (SC) – referred to.

The Judgment of the Court was delivered by S.A. BOBDE, J. 1. The Revenue-Appellant has come in appeal against the order of the Central Excise and Service Tax Appellant Tribunal (for short “CESTAT”) dated 04.04.2007. The Respondent manufactured goods falling under Chapter 72 of The Central Excise Tariff Act, 1985. The Respondent manufactured Pig Iron and HR Coil Sheets. While selling the goods they raised invoices on the price of goods plus ‘Dharmada’ a charitable donation from customers. According to the Respondent, the Dharmada was meant for charity and was accordingly credited to charity.

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