Chapter 01 - Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016 (From Rule 1 to Form II)
Differential duty liability arises when concessional goods are not used for the intended purpose, triggering recovery and interest. Where goods cleared at concessional rate are not used for the intended purpose, the applicant manufacturer must pay the difference between duty leviable but for the exemption and any duty already paid, with interest; recovery provisions of the statute apply mutatis mutandis except the time-limit. If the applicant is non existent, the supplier is liable. Defective, damaged, unsuitable or surplus goods may be returned and will be added to the supplier's non-duty paid stock; losses by natural causes or unavoidable accidents are deemed non use.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Differential duty liability arises when concessional goods are not used for the intended purpose, triggering recovery and interest.
Where goods cleared at concessional rate are not used for the intended purpose, the applicant manufacturer must pay the difference between duty leviable but for the exemption and any duty already paid, with interest; recovery provisions of the statute apply mutatis mutandis except the time-limit. If the applicant is non existent, the supplier is liable. Defective, damaged, unsuitable or surplus goods may be returned and will be added to the supplier's non-duty paid stock; losses by natural causes or unavoidable accidents are deemed non use.
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