2018 (7) TMI 2338 - SCH - Central Excise

Liability of the respondent Assessee to pay additional duties of customs under the Customs Tariff Act, 1975 - HELD THAT - Having perused the order of the High Court of Delhi which decided the matter in favour of the respondent Assessee, relying upon the decision of the Delhi High Court in the case of MODI RUBBER LIMITED, MODI NAGAR, UP. AND ANOTHER VERSUS UNION OF INDIA AND OTHERS 1986 (12) TMI 41 - HIGH COURT OF DELHI AT NEW DELHI and also the decision of this Court in the case of UNION OF INDIA VERSUS AHMEDABAD ELECTRICITY CO. LTD. 2003 (10) TMI 47 - SUPREME COURT , it is opined that the present is a case where the High Court ought to have decided the matter taking into account the provisions of Chapter 40 of the Customs Tariff Act, 1975 read with Chapter Note 6. The present, therefore, appears to be a case of incomplete adjudication and, therefore, would require a fresh adjudication. The order of the High Court is set aside and the appeals are allowed.

Summary

Issues: Liability of respondent to pay additional duties of customs under the Customs Tariff Act, 1975.

The Supreme Court, comprising Hon'ble Mr. Justice Ranjan Gogoi and Hon'ble Mrs. Justice R. Banumathi, heard the matter concerning the liability of the respondent - Assessee to pay additional duties of customs under the Customs Tariff Act, 1975. The Court noted that the High Court of Delhi had decided in favor of the respondent - Assessee, relying on previous judgments. However, the Supreme Court observed that the High Court should have considered the provisions of Chapter 40 of the Customs Tariff Act, 1975 along with Chapter Note 6. The Court concluded that the matter required a fresh adjudication due to incomplete consideration by the High Court. Consequently, the Supreme Court set aside the High Court's order and allowed the appeals, directing for a fresh adjudication in accordance with the provided directions.