TaxTMI 
TaxTMI 
2015 (7) TMI 1229
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....he appellant-company on the aspect of limitation, especially when the entire demand is barred by limitation?" 2. The facts, in a nutshell, are as hereunder :- The appellant is a manufacturer of cold vulcanizing solutions and importer of hardener compounds falling under Heading 3506 of the Central Excise Tariff Act. The appellant also manufactures rubber sheets falling under [Heading] 40.08, rubber profiles under [Heading] 4005 and hot vulcanizing solutions under [Heading] 4005 at Gudur plant, they manufacture rubber compounds and solid tyres falling under Chapter 40 at the factory at Athipet and cold vulcanizing solutions and hardener compound falling under [Heading] 3506 of the Central Excise Tariff Act. 3. A show cause notice was issued on 2-6-2000 by the Addl. Director General, Directorate General of Anti Evasion (Central Excise), Chennai Zonal Unit proposing to levy duty demand of Rs. 186.71 Lakhs. After adjudication, vide order-in-original dated 30-10-2003, while confirming the duty demand of 133.89 lakhs, penalty equal to the sum under Section 11AC read with Rule 173Q of the Central Excise Rules, 1944 was also imposed. Personal penalties to the tune of Rs. 15 Lak....
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....rmination of any question having a relation to the rate of duty of excise or to the value of goods for the purposes of assessment." Hence, this Hon'ble High Court has no jurisdiction to adjudicate the issue raised in the appeal." 7. Insofar as the present appeal is concerned, challenge is made by the assessee, who has approached this Court, on the ground that excise duty is not payable on repacking of cold vulcanizing solution and hardener, while the Department insists that, the said process amounts to manufacture and, hence, liable to excise duty. 8. The Supreme Court in Navin Chemicals Manufacturing and Trading Co. Ltd. v. Collector of Customs - 1993 (68) E.L.T. 3 (S.C.), considering the scope of the High Courts to entertain appeal where the rate of duty is under challenge, held as under :- "11. It will be seen that sub-section (5) uses the said expression determination of any question having a relation to the rate of duty or to the value of goods for the purposes of assessment and the Explanation thereto provides a definition of it for the purposes of this sub-section. The Explanation says that the expression includes the determination of a question relating to....
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....ted hereunder :- "35G. Appeal to High Court. - (1) An appeal shall lie to the High Court from every order passed in appeal by the Appellate Tribunal on or after the 1st day of July, 2003 (not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of customs or to the value of goods for the purposes of assessment), if the High Court is satisfied that the case involves a substantial question of law."                       (emphasis supplied) 10. The power of the High Courts to entertain an appeal under Section 35G of the Central Excise Act, in a case of dispute on the rate of duty fell for consideration before the Karnataka High Court in the case of CCE, Mangalore v. Mangalore Refineries and Petrochemicals Ltd. [2011 (270) E.L.T. 49 (Kar.)]. The Karnataka High Court, after considering the various legal provisions on the said subject as also the various case laws, including the decision of the Supreme Court in Navin Chemicals case (supra), held as under :- 12. In order to appreciate the af....
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....n appeal under Section 35G and exclusive jurisdiction is conferred on the Supreme Court in these matters. The language employed in these two sections read together is clear and there is no scope for any doubt or confusion in this regard. *   *   *   *   *   *   *   *   * 42. Broadly the following disputes do not fall within the jurisdiction of High Court under Section 35(g) of the Act :- (a) Dispute relating to the duty of excise payable on any goods. (b) The value of the goods for the purposes of assessment. (c) A dispute as to the classification of goods. (d) Whether those goods are covered by an exemption notification or not. (e) Whether the value of goods for the purposes of assessment is required to be increased or decreased. (f) The question of whether any goods are excisable goods or not. (g) Whether a process is a manufacturing process or not, so as to attract levy of exc....