2015 (11) TMI 153 - SCH - Central Excise

Demand of duty of free supply of goods as intermediate goods - Activity of manufacturer of Hydraulic Control Lever Assembly and other assembly - whether an excise duty is applicable on such goods - Held that - Tribunal has answered the question in the negative following the judgment of this Court in International Auto Ltd. vs. Commissioner of Central Excise, Bihar 2005 (3) TMI 132 - SUPREME COURT OF INDIA , holding that manufacturer of final products would be entitled to adjust the credit on the inputs supplied by it to the intermediate purchasers and also entitled to credit for the duty paid by the intermediate purchasers on its products. - Tribunal has rightly relied upon the judgment which squarely covers the subject matter of this appeal. - Decided against Revenue.

Summary

The Supreme Court dismissed the appeal regarding the applicability of excise duty on goods supplied "free of cost" by a manufacturer to a buyer, citing a previous judgment that allowed the manufacturer to adjust credit on inputs and duty paid by intermediate purchasers.