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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
P.SAM KOSHY, SUDDALA CHALAPATHI RAO
Vantech Chemicals Limited – Appellant
Versus
Commissioner of Customs & Central Excise, Hyderabad – I – Respondent
ORDER :
P. Sam Koshy, J.
Heard Mr. A.V.A. Siva Kartikeya, learned counsel appearing on behalf of Ms. Nafisa, learned counsel for the petitioner; and Ms. Pravalika, learned counsel appearing on behalf of Mr. Dominic Fernandes, learned Senior Standing Counsel for CBIC, for the respondent.
2. The instant writ petition under Article 226 of the Constitution of India has been filed by the petitioner assailing the proceedings initiated by the respondent / Commissioner of Customs & Central Excise, in show-cause notice O.R.No.69/2006-Hyd-I, Adjn., dated 04.10.2006, to the extent of proposing to determine the assessable value with reference to sale prices of trader Rallies India Limited (for short ‘RIL’) as illegal, void and inoperative and interdict the petitioner from proceeding further in pursuance of the said show-cause notice.
3. The facts of the case are that the petitioner is a manufacturing company based in Hyderabad. The petitioner entered into an agreement date 15.09.2001 with RIL for manufacturing of agro chemical formulation bearing brand name “Contaf 5E” (chemically know as Hexaconazole 5% EC). Under this agreement, RIL supplied all raw materials and packing material to the petition
The court affirmed that excise duty is based on actual market value, ruling the show-cause notice was lawful due to material non-disclosure by the petitioner.
Demand of excise duty - Re-open of concluded proceedings - Not permissible.
Tax assessments under the Central Excise Act must clearly establish manufacturing versus job work roles among appellants to avoid wrongful liabilities.
Maintaining predictability in taxation law is of utmost importance – While Department’s hands are tied with regard to its Circulars, no such prohibition operates on Courts and Tribunals.
Valuation of goods for captive consumption must follow Rule 8 of the Valuation Rules, establishing revenue neutrality as paid duties are accessible as CENVAT credit, negating improper demands.
Revenue cannot deny SSI exemption by presuming trading sales as manufactured without investigating capacity, suppliers, transporters, or verifying audited balance sheets showing separate sales; deman....
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