2023 (3) TMI 293

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....inal No. ALW-EXCUS-O-I-O-COM05 to 30/19-20 dated 5.3.2020, whereby the learned Commissioner dropped the demands of CENVAT credit on tubes and flaps. 2. The assessee is engaged in the manufacture of automobile tyres falling under chapter 40 of the First Schedule of the Central Excise Tariff Act, 1985. (CETA). The assessee was domestically clearing such tyres along with tubes and flaps by paying central excise duty on the value of the entire set packing, i.e. tyres, tubes and flaps. They were also exporting these items. The assessee, therefore, availed the CENVAT credit of duty paid on purchase of such tubes and flaps. 3. Before adverting to the present proceedings, it would be justifiable to appreciate that the issue raised now stands ....

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....rue that in the present case, the sockets were bought by the appellant from the market before they were fitted to the said m.s./g.i. pipes. However, the appellant had cleared the pipes fitted with the sockets and it had charged its customers for the pipes filled with the sockets and, therefore, the department was right in loading the price of the pipes with the cost of the sockets. In the case of Hindustan Polymers v. CCE, reported in 1989 (43) E.L.T. 165, this Court has held that under Section 4, the normal price for which the goods were sold at the factory gate shall be taken as the assessable value and if a manufacturer levied a charge for an item (socket in this case), which was instrinsically necessary to place the pipes on th....

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....as right in including the cost of the sockets in the assessable value of m.s./g.i. pipes. Before concluding, we may point out that the sockets in question were bought out items, as held by the Commissioner. The cost of the sockets was includible in the assessable value and, therefore, the appellant was entitled to take Modvat credit on the duty paid on the sockets, subject to the appellant‟s producing duty paid documents to the department within eight weeks from the date of receipt of the judgment. In fact, directions to that effect have been given by the Tribunal in the impugned judgment." 4. Being aggrieved, the Department filed civil appeals before the Honourable Supreme Court, however, vide order dated 6.2.2019 the sam....

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....e tyre manufacturer along with the tyres manufactured and sold by them does not entitle them to claim CENVAT credit. The said judgement of the High Court of Kerala was relied on by the revenue, in the case of the assessee in the earlier round of litigation, however, the same was distinguished by the High Court of Rajasthan. We have also been apprised that the judgement of the Kerala High Court has been appealed before the Hon‟ble Supreme Court by Apollo tyres and the same has been stayed. 7. We are of the considered view that the decision of this Tribunal as well as of the High Court of Rajasthan in the case of the assessee itself holding that CENVAT credit on duty paid tubes and flaps as accessories of manufactured tyres is admiss....

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....aking such offensive submissions before a judicial forum. The statement appears to be in complete defiance of the principles of judicial discipline. The judgement of the Tribunal is definitely binding on the adjudicating authority and similarly the decision of the High Court is binding on the Tribunal and so are the same binding on the revenue. In that view, the observations made in a recent pronouncement by this Tribunal in Varun Beverages Ltd. Vs CC,GST & CEx, Jaipur, [2022 (2) TMI 731] needs to be referred: "13. So long as the order of the Tribunal had not been set aside by the High Court or the Supreme Court, it had precedential value so far as the Commissioner (Appeals) was concerned and the observations made by the Commission....

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....ppeal before the Supreme Court. The Supreme Court remarked that as the Assistant Commissioner had not followed the decision of the Tribunal merely because an appeal had been filed by the Department before the Supreme Court, the High Court had rightly criticised the conduct of the Assistant Collector since it resulted in harassment to the assessee caused by the failure to give effect to the order passed by the Tribunal. The Supreme Court also observed that the order of the Tribunal is binding upon the Assistant Collectors who functions under the jurisdiction of the Tribunal and that the principles of judicial discipline require that the orders of higher appellate authorities are unreservedly followed by the subordinate authorities. The relev....