Karnataka High Court
M/S Pashupati Steels Mangalore vs The Commissioner Of Central Excise on 7 April, 2011
Bench: N.Kumar, Ravi Malimath
IRE THE HIGH CQERT QF IL*&RNA'§A,KA. AI'
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JUDGMENT
Sr: K. Na;*a:y21:'}.a Swam':y' is:-sg';?§i1°eé<f't',e3¢;"i'"*:.{;----i'.;:ké%=.:(1'oti<.é§ fat' :'65sp0}:1dent: in TRC N0. 5,f2UG<1.
2. TRC 2/2094 and w5'{'2.Q"04 ;+.-2.1? the insiaxlxzte of £116 aissacéssnflgta xx*i2e:'V_:§%;é3- 5 r::i13:i=enc:e at the instance of 'aha :"e'a}€-«rgifixei % ._ThE§VCi{;£iSii€)Ifi'(3fni£¥TVv'Wi'1i(T1'1 is 1'ei"erred is as under: ¢ "W?Lié~:ih§:>r. V{:}:3,8AA':;¥f{i1(}5{1%,§j qf cieerneci moduazt credit ;g;r':af€r fie/}§"Z'?.'lVlf§'4:?'{.:I"'_§}" qf FiT2Cl3"!{.'£'3 Order Iva, MP' "":'I§R,}:/z:is;rzer/"z*.§x53:3,?94.-:rRLz dC:.{'.ed 1.3.94 :.o0u.Id a{2;z€iiq?3ie £0 {:16 :'e~mlEe*r$ {swan after cmgsirzg {_h.é' %iI}r;:}1g>t.arg; £i.mz'i' of 525;. 73 LaE«:?':s; in respsacf: Qf' "fi3a£.z;:% Qj' d£;'C1I"(1IIC€3£~§.., in zermss zzgej" f\Fc;f§j"iccz.z;z',<3n '@909 2 293 e:Ec2{"z2z:i 28,2953 3/ 1;. '§"i":s--.~ a:':ef«;w€::* LG fthiss qué3ssi,i<:2z§ re'mE<~.-*e:=:$ the ini,ei1';73rc>tat.:i{>r': ta} %:>é;=. ;3§ac«::d; <;:-H 1'10t4§'m*.at.i<3r: Nix E iixcisc daéed F ebr:.2a1;3J iQ€:}& E33; vi:'1;.:.,1<-3 :~;1fl3--se:":1.i€:n {1} {if E'>e:<:t.E<m EBA sf T A.c't.3 1945: in p'u.b§3:c §:1€,e;"<n:st.« fxl'1r_;f_ %'3€:1'4ii.*:i;;'§:'V£}0&re;;i§":'.:t:ifif'23€? {ram the paymerit: of e;s;cj;sse in Ehe €11f11'.1{',X'Ll§'€f to 'U'1'€"i:4 55'i;1iC1 under the Schacmle to the: The goods in question 153 ;_1V'i:91"A;V.L:}f'{0m:=1_ds:L SSH" "?214.90. The zmsessee \i'a..s .;2{'\ir;;«1i1ii'1-;'_;. c:1't:-%§'r:j1fc'*s:'--.,A_err3'c,iAi'a:=in 1"es;)ec:*:'. of {hair inputs viz, __of iron arld. $168}. They used to n1a11u'fa€:i--:,%1'e ;§4:i'di"i23isE1€cE products at c.m1cessi0'r1&§ €:}.i"'.Ch_1{V':\_y='V vZ3__:E}Vfi ' a1xg§1§1<;%d cieemed m'<3d§'£. of their remrollabie A E11.1'£'§;}'()I"i{.i€$ isssued 2: Sh(}V€ C5-11.18%: naiice calling ._'1§:i§§__i§;i;: {ranges W21}; the: £iL1£'.:;' shcmld not be ktvied «cm ifiexzl :flA1€i:" t.<)*La?; iL1:'1'1e:>veéz* €;',X{'.'€€,'.~dS "R5535 'L-akhs anci 'V A. i;7f1_Q'rs_;riV5c;s'1":i€, why timz €£€.eme€: credié sr~.h<>uic1. mus: be dezzifzfi £0 é:.h.em, '};""§;.»::i' as.~3S€$s:::€ ;30'im:<3ci gm". i;§:1a1. zitaey awe: :1 'SSE Uni? and 1h{i"i.}:'
-~----71.c>'t211 '{L1F'E"i§}'~J€E' is; less iiizm 'E€s;g2 C:'<>r@s emd §,h:3*r:':f0:*e.3 they EBJTE3 'Rib é:}:T>3;.ii§e;CE 10 {'.(}I1(?t;.'&%;§§i(}§}.£:U r;1E.a: 0? (12,113; as m€::1*£'i(2:;v¢:'£,_ in ihe noi.i.E'iCa1i,i.0:"; in §.he €:X't,€~r1E ()5 R532. 75 L;;1.§<.h:~3 and i"ir3§;"c§z;«§i.§::ii__L'{éé;__{E16 reI11aiu:m§_; extsnt. {hey have: is pay daily at..§2Q_'i*H1:1'§..T:'2:;i.:: ai';'3§ mcéraiy bacmtsa '£.he.i2:° i'.<>%:a_3 i':.:11':'1{:av€i:b €:xg?.::<::d;s-2 _?"£3; 4i€3,Ei.I_}.;$',{{hif}' ' <3a.r1.'r10'i. be dfinifid 'the: ¥:3e1'1r:;t.§i.1,,£%:~:§.e::";dté{i_1.0 'i.1"1e1.?z:v -- %..;;,'<:de':' '£.'1'1.e°:3ai'<.§ 110*:.ifica1';i0'r1. Howexge1".,, 1.216 séiizg E1L11}1,()I:Zi'E}":{)"v;i§Z'~1"'U.i€§ the said 0bje:c:t.ic>;";s and (§§§4".€':{'«.'1Cd. 1§,h€§If3.~ I.{)"@3137 d'L1t"y"de'nying the coniiessionsd ;:e,1¥:.s:Vwhi(:1': VtV_h_.(éy._{h;i_cVI {1\rai:1.c3 d %3efo1.'e3K§;he_ CoVr:1'f;1'is»SiVam'.e:r 7c:=.£T__CL1.$t0'n";s and Excise who set aside {he Qrdeéa «sf §.hE: z,i)':;se3.sé3"iI.1g§ <}fl'i(:e1" and ggramed the bezidii. Ag_§;:g;zfieVe£i by fin: 5211116; 1116 revearme preferred an appeal to the u:1b{2:1 . _C;9:3_é3 <;>§1;.he;é zxppé-raiss e':2m1{-3* it) be dispoésed off in the 0'%"v%}';»..€::_ j'as,T§i;;%:1€'x11; a'>f1h<;*: ".§"rih:.2':1a1§ cii5n1i.sS§:zg the appeal and L:§5'E7.0§d__ii1 g>.«{;he ordez' 0f 2.1%: C0ImI:§ss'i.0ner, In mspezet 01' Ehe V ..0?'?:e:° é;w<> :5:;3p<a21':s; the €§'£°('1€EY sf {hf} C{)fI3.§11§SS§OI1E'fI' wass get. aside *_ié%'2~ zriew of a ;L1€£g§.m€.;'1:. £3?" the E;~:r;.:e'r §3€E"LCh which hfiié that {he "3.SS€:':i~E'5€€3 is 30E: :3:z§,i1;F.ea:i {,0 'i.h€.- '£;:c::*:':e§i.L of €:x.e::a;3£.ie:: as; we 2 3% L/ /' .?3.'(%E=;'E${?f:§i':§€;',€ had <:z"<)s:s5£;*<i the §"z1zz1*}<; of R:::"?5 Ej,z1§<..i1$: '§.'i":g1i 212:. the ins5%'.a1'1c:e of é.,%"m :"s:v<?:1:_.1c? v;<--3:1iE 21$; éhsr EiE§f§5'€:f':7;5$;3€i'?3_""§:§1yf3§=;iF§ 1'€fr:.rem:<:s--s are mask.
8' Tkie C§L1(3S'[',iGE": i:'1vr;)1*;s's:;ci 111"-ihese, p'rr:¥a':¢é%'(1'i:1gis 's2s.raé's.. agiteied before the High Cc3rL2_'1":1.'V'VL':<;':>VL§.". in thté Casse of 3001;) STEEL». (P). ""LIiii1TED vs COMMISSIONER VOF f§:Xx<§i'$:j:;'.%'[[[2'0o9 (241) ELT 186{HP)I. t',3'A;iI:3'£.':{'¢1{":F:13A'f>1.5 Ci{>1,1§1. held that the ordei" of iT11é:j§e1:*g¢.1' f95:213C1*;:faA151'Wiaicéffz *re'1iar1c<~3 is placed is not co1*rec:1}__ ,".I"11e: ';b.€.*1»3_V{§'i".i"L> a_I.'7.1'}1<»=. .'11OE.i.1'iLf€t'{,iOi"1 N0. .1./93--C.E is:
avai§21'b1e '(:13 23013; "1:1'1é;.i1 11£7ab1.'.u:'<::2: whose t,c}'t9.i <::1eam:1ces in the p'£"es;*g§:di:1§_§ £'i:1.;1:é»;ti;;.il $32.15: {Ed 119%' é.-éxceeci Rs. 2 C'K'G'{'€S, Howeveré ,€'t1€: be:1€:fi:_;in,{1e:;' the :1{>i.ifi(::;:1.i.Q11 was limited 'La ciearanctea up Q" '?'i':'V"§.,,;g17ir;'rfj;s::" 823;. ibis; <i{.:v;?.s'-la; nut: gm-32m that. m3nu.£'21c'mr<~:rs 'Wh{?:~'e€ «:;'§éa1'ra11<%<:::s excééezi R55. 75 Lakhs but: whose (71€a§'£L1ECE?S is irésg théitl 2 £:?€)1'€*.s E1I'€;*, :16? e;1§i1;.1€-{E to the ::.>.:e111pt§0'n.. Tlqe :§{3V:,'i--§.'i<:2:£i<3z: icie1'1Ei§ieé3 %_i'1s:, <:aE.eg<>'rj£ sf 11:31:11.:f21<?E:_:I.'€:m Wha Eiffi v-~se2d;.:;sfj;i.11.g {he {".I"§§_f;'*§"iE1 as 53:31 mzé. in {he :1(}£.'ifi€2?z'[§{)I1. glad are %/..
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er1£,§:.I€:d "£13 gwail the 'z'3e.r:<:%i"'i%. of 3.116 ésajd ::<>¥_.i§_'i<:21i,'i0:';. "i.'§1§_f:-'§:T§1i;:j{:, if. exiemied aha b€E'}€if§§_, L5: (ha? Eift-':E;=i~€?$§f€-36E': Whajse i.c«i,.aE kegs {ham Rs. 2 {:§h(?}I~€:%$V 2 V " M ?. The §3'i.iI1j2T§£) arlci I"'{2"§1"i}"2_§:11£i ~.<.:.:€3'Ll1¥ij},..'§j§'i': f;',1'i:;*. 'C'§;--°. COMMISSIONER vs DOABA siffiii. Rbfizfklvashv-:£.HV;iI%£;$ s[2o1<§' (257) ELT A53 (P&H]i*<fi'1o;vi11g 'f:1i1§VL--:;§j;ii;i»;;;:11¢n1.«bVIV'"t.£i'§4 E-Iimachai ?;*adesh High C0uz'1;. heid" entitied to the bermfii undez" me' 1'iE);_I7Zif§g{";*;..':fi{)'1'1.Afi;'1i3LfEi., §?:.'1'§%§f:"LI"'vEi}"1.Lffi'tE-3 are less than Rs, 2 Cr0;'es:~i _
8. "$26 *hz-WVE gcfixzz .'1'.'§_'}.1"'4()L.1§;_;'h the m'>t.iI§£721t.i<311. Efieibre an ass§?5~f_§s€e%A.avaiiS" *;'.;t_j1:% benfrléi z.113.de§" the Said 11o'i',if'i«::a1.i<)n, he has $1)'.Sa1.§Si3€,'%'&1I;§€)LIS :"a%qL1§re211e11't.s3 si'.ipL1§21E'.€d 'Eh<31*ci.:1. Once such '.}.'rT§€v:'1.,1'i'§°ff§"iEfE£E,'£ZS me: %;.he:: the? E1.E:":':"'~1€'E:Z-f:SEf€'. wc>u1<;i be enITiti<3é ta thfi'.i2?{}I'1£ii3S:i3i'{}'[1.3§ payment 0,»? rate (>I'ciu1;y to the €Xt.em. of R3. 75 , La1«;hs. ""'§.~'€Z*aien in Z"E3fE§§}f3{'.'{_ Of Rs--;. 75 Lakhzs {here are §,hr€e siabs "':m{}--'*:.1'1r£%e3 rates; G"? 53113; art': ;:»:"e:3ssa::"i§3<3c§.. Eiui, ims; E3e;:1efii. is " ~--e;'X'£.€3I'3e:ififl in 21;: *w}"ms.»;€. 1i{}%;,2»13. (?E§*?fE1E"€3.§}{I€'.-1'-3% 1635333 than ..////fl ¢21$':-:e:s§cée and agaifist, i'§'"§€ :"€va:*.:11.ae' A}; the reI"erences are A svazstifé-:{§x aria-€nfi:.:§§:1giy, xi?
Rs2;.2 C:'<}:'e:+;. In <}iE.:2.er wm*<:§ss this :1: be1'w:f'ié' 9. s5srn2"s.E} scaie E.§I1i.'L wE';0;~:;a;%. i.a:>La.1 <:rEe.2n';11'1<:€s~; zio 1:1;:}:E%'* "E3; 4' Crmcs. in eihei" WOI'{iS; §3€;3f(}I'E:'. em: a?::;&::;3$5s<%;? :§g<::'1;3'fi.I,, 2 m'3dé_-'.1' this ;'mi.i.t'iz;:aI':.*;<3:'1. aha i3;rss1:' <3{:::"ii7a.;.iié;'iA§)r'L {(122 hiss <:1e21:'ances~3 Shoulii be 1€$V\E:';L'1ihxE:E'1 ccmditiorz is fulfilleci. or; fihra fixjs-_:s.1i::Vf§s>._"E'E":s*._§,;11«;i91s;«:%:i%;21;fg;§z:<:es he can avail the benefit 0!." ~:tv<)"1'*xr;*:-«e'::'~;s:;i"(.w}'_1"1iéi . of rate of duty as pFE3S(3I"ib<:?d f§11<2 I,akh:~2.,, then R535 20 u :TH(":'1'€_'",fOI'ii', the View of the iarger;I;3<:;;1§tE1f};e{«:_; exceed R575 Letkhs, the assesgggge is :V1 <§'ij:V:'a;v.i§it.1§:§;i"Vfigs~~<::0'r1éessi0112=a1 rate of duty is; «ex facie:
illegal V 'I"i()IifVi{2Eii,i()§3. in that View of the H1en';z*<:s";",_¥;.h€: qe-ma=$t.iOr1 <5?' iaw Eaasg to be a11swz:%1"s;\c1 in i';-1»-'<:ur of the g// /.
Is} 9; 3:': 'ii K» §'*5;':1':1}ra:z'm SwzT:::::}»' 1.5:; ;i}€;"z1";§'£::;t=rz:i {.0 'f%§€é- r§;s%::13.{3 €31' 21;)pea1*a1'1{:€< R31" :'<:s;p{31'1s:§e,:'1E. in "§"R(T E\To. 5/:?,€3_{Jl§ &s..f';t.'i":§%'z= _'i_&)1:'r'__ WE: eiazs,-3 ' ck]