Collector of C. Ex. Vs. Navrang Cine Centre (P) Ltd.

Collector of C. Ex. vs Navrang Cine Centre (P) Ltd.

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Apr 03, 1998

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Citation: sooperkanoon.com/13228
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On: Apr 03, 1998
Subject: Excise

Case Summary

AI-generated summary - not the official court judgment text.

Excise

Key legal issue: Excise

Parties & Advocates

Appellant / Petitioner

Collector of C. Ex.

Respondent

Navrang Cine Centre (P) Ltd.

Legal References

Reported In: (1998)(103)ELT144TriDel

Excerpt

.....hypo-granules from the open market which are put into water along with certain other photographic chemicals to make a solution. the stand of the department is that the preparation of hypo-solution from the duty paid granules amounts to manufacture and waste of hypo-solution is also goods known in the market and hence chargeable to duty.2. we have heard shri a.k. madan, ld. sdr in appeal nos. e/2014/93-c, 2013/93-c and 2017/93-c and shri h.k. jain, ld. jdr in appeal no.e/5441 /92-c and have perused the records.3. in the case of m/s. navrang cine centre (p) ltd., the respondents have asked for a decision on merits following the ratio of the tribunal's decision in the case of famous cine laboratory reported in 1993 (66) e.l.t. 253 in which it was held that hypo-solution being a product for instant use and has short shelf life, does not to be treated as excisable goods. the tribunal held that the department had not brought out any evidence to rebut the claim of the respondents that hypo-solution is mainly for instant use and that it is ephemeral in nature. the ld. sdr submitted that it is incorrect to say that the product has short shelf life. it is capable of being brought to the market in specialised condition such as being brought to the market without being exposed to light. this contention of the ld. sdr is not substantiated. there is no material on record to show that the findings of the collector (appeals to the effect that it has got short shelf life and is not marketable, is factually incorrect. the claim of the respondents has also not been rebutted by the department by any evidence to support their claim that hypo-solution can be repeatedly used and is marketable and does not have short shelf life. further the decision of the tribunal in the case of famous cine laboratory has been confirmed by the supreme court. following the ratio of the above decision, we hold that hypo-solution used for captive consumption and the waste of hypo-solution are not.....

Full Judgment

1. The issue for determination in these four appeals is the excisability of Hypo-solution for developing of cinematographic films.

The respondents herein are engaged in the manufacture of cinematographic films exposed and developed, falling under Chapter Heading No. 3706 of CET, 1985. They purchased hypo-granules from the open market which are put into water along with certain other photographic chemicals to make a solution. The stand of the Department is that the preparation of Hypo-solution from the duty paid granules amounts to manufacture and waste of Hypo-solution is also goods known in the market and hence chargeable to duty.

2. We have heard Shri A.K. Madan, ld. SDR in Appeal Nos. E/2014/93-C, 2013/93-C and 2017/93-C and Shri H.K. Jain, ld. JDR in Appeal No.E/5441 /92-C and have perused the records.

3. In the case of M/s. Navrang Cine Centre (P) Ltd., the respondents have asked for a decision on merits following the ratio of the Tribunal's decision in the case of Famous Cine Laboratory reported in 1993 (66) E.L.T. 253 in which it was held that Hypo-solution being a product for instant use and has short shelf life, does not to be treated as excisable goods. The Tribunal held that the Department had not brought out any evidence to rebut the claim of the respondents that hypo-solution is mainly for instant use and that it is ephemeral in nature. The ld. SDR submitted that it is incorrect to say that the product has short shelf life. It is capable of being brought to the market in specialised condition such as being brought to the market without being exposed to light. This contention of the ld. SDR is not substantiated. There is no material on record to show that the findings of the Collector (Appeals to the effect that it has got short shelf life and is not marketable, is factually incorrect. The claim of the respondents has also not been rebutted by the Department by any evidence to support their claim that hypo-solution can be repeatedly used and is marketable and does not have short shelf life. Further the decision of the Tribunal in the case of Famous Cine Laboratory has been confirmed by the Supreme Court. Following the ratio of the above decision, we hold that hypo-solution used for captive consumption and the waste of hypo-solution are not "goods" known to the market and hence are not liable to duty. In the result, we uphold the orders passed by the Collector (Appeals) and reject the appeals of the Revenue.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Collector of C. Ex. vs Navrang Cine Centre (P) Ltd. Same Subject Excise