TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>High Court: Externally purchased accessories not excisable goods. Emphasizes factory-manufactured products. Delay condoned for appeal filing.</h1> The High Court held that optional accessories purchased externally by a vacuum cleaner manufacturer are not excisable goods for excise duty. The Court ... Appeal - Condonation of delay Issues:1. Whether optional accessories purchased from the market and not manufactured within the factory premises should be considered excisable goods for the purpose of levying excise duty.2. Whether the delay in filing an appeal before the Collector (Appeals) should be condoned due to sufficient cause and heard on merits.3. Whether the principles of natural justice were violated in passing an ex parte order by the Assistant Collector.Analysis:Issue 1:The petitioner, a manufacturer of vacuum cleaners, argued that optional accessories purchased from the market should not be considered excisable goods for excise duty purposes. The petitioner relied on a Tribunal order stating that certain items, like extra bags, do not form part of the assessable value. The High Court agreed with the petitioner's position, referencing the Tribunal order and directing the Collector (Appeals) to assess only products manufactured and cleared from the factory premises.Issue 2:The petitioner's appeal before the Collector (Appeals) was dismissed due to a delay in filing beyond the prescribed time under Section 35 of the Central Excises and Salt Act, 1944. The petitioner argued for condonation of delay citing illness of their advocate and referenced a Delhi High Court decision emphasizing the need to consider sufficient cause for delay. The High Court concurred, quashing the Collector (Appeals) order and directing a rehearing, stressing the importance of exercising discretion judiciously and in line with natural justice principles.Issue 3:The petitioner challenged the ex parte order of the Assistant Collector, alleging a violation of natural justice principles. The High Court found that the Assistant Collector's order was passed shortly before the Tribunal's order, leading to an unsuccessful appeal before the Collector (Appeals) due to a technical interpretation of Section 35. The Court emphasized the need for proper notice and a fair hearing, ultimately setting aside the Collector (Appeals) order and directing a rehearing to uphold principles of natural justice.The High Court also highlighted the applicability of Section 5 read with Section 29(2) of the Indian Limitation Act, emphasizing that the Collector (Appeals) should have considered sufficient cause for delay in filing the appeal. Additionally, the Court criticized the negligent conduct of the Excise authorities during the case hearing, directing appropriate steps to be taken by the Collector (Customs). The judgment concluded with the disposal of the petition without any orders as to costs.
TaxTMI 
TaxTMI 
