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Sandoz Pvt. Ltd. v. Union of India

Central Excise Act, 1944 – Section 5A –  Foreign Trade Policy (FTP) – Power to grant exemption from duty of excise – Terminal Excise Duty (TED) – Refund of.

Question of Law

1. Whether the entities herein are entitled to refund of amount purportedly towards TED in respect of specified goods procured or supplied, as the case may be, being deemed exports and from which authority, either under applicable Foreign Trade Policy (FTP) or the 1944 Act ?

2. Whether Circular No.16 (RE­2012/2009­14) dated 15.03.2013 is merely clarificatory regarding TED refund and exemption and the efficacy thereof?

The EOU entities, who had procured and imported specified goods from DTA supplier, are entitled to do so without payment of duty [as in para 6.2(b)] having been ab initio exempted from such liability under para 6.11(c)(ii) of the FTP, being deemed exports. Besides this, there is no other entitlement of EOU under the applicable FTP. Indeed, under para 6.11(a) of the FTP, EOU is additionally eligible merely to avail of entitlements of DTA supplier as specified in Chapter 8 of the FTP upon production of a suitable disclaimer from the DTA supplier and subject to compliance of necessary formalities and stipulations. It would not be a case of entitlement of EOU, but only a benefit passed on to EOU for having paid such amount to the DTA supplier, which was otherwise ab initio exempted in terms of para 6.11(c)(ii) of the FTP coupled with the obligation to import the same without payment of duty under para 6.2(b). [Para 42]

Case Law Reference

  1. Manali Petrochemical Ltd. v. Additional Director General of Foreign Trade, W.P. No. 23194 of 2009, 16.9.2019
  2. Hindustan Tin Works Limited vs. Union of India, 2020 (373) ELT 217 (Del.)
  3. Multitex Filtration Engineers Limited vs. Union of India, 2020 (373) ELT 68 (Del.)
  4. Motherson Sumi Electric Wires vs. Union of India, 2018 (364) ELT 91 (Del.)
  5. Alstom Transport India Ltd. vs. Union of  India, 2018 (363) ELT 69 (Del.)
  6. Deepak Enterprises v. Union of India, 2018 (360) ELT 905 (Del.)
  7. Commissioner of Central Excise, Delhi II v. Welspring Universal, 2018 (359) ELT 635 (Del.)
  8. Lenovo (India) Pvt. Ltd. v. Union of India, (2017) 346 ELT 12 (Mad.)
  9. Union of India v. Alstom India Ltd., 2015 (325) ELT 72 (Del.)
  10. Raja Crowns and Cans Pvt. Ltd. v. Union of India, 2015 (317) ELT 40 (Mad.)
  11. Kandoi Metal Powders Manufg. Co. Pvt. Ltd. v. Union of India, (2014) 302 ELT 209 (Del.)
  12. Commissioner of Central Excise v. Shilpa Copper Wire Industries, 2011 (269) ELT 17 (Guj.)
  13. Joint Director General of Foreign Trade v. IFGL Refractories Ltd., 2002 (143) ELT 294 (Cal.)
  14. IFGL Refractories Ltd. v. Joint Director General of Foreign Trade, 2001 (132) ELT 545 (Cal.)

Case Number : Civil Appeal No. 3358, 3359 & 3705 of 2020

Hon’ble Mr. Justice A.M. Khanwilkar pronounced the judgment of the Bench comprising His Lordship and Hon’ble Mr. Justice Dinesh Maheshwari and Hon’ble Mr. Justice Krishna Murari.

For Appellant(s) Mrs. Anil Katiyar, AOR Mr. Rahul Gupta, AOR For Respondent(s) Mr. Rupesh Kumar, AOR Mr. T. Sundar Ramanathan, AOR Mrs. Anil Katiyar, AOR Mr. B. Krishna Prasad, AOR

Case Link : https://pdf.caselaw.in/sc/2022/01/1162/

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