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Issues involved: Application for modification of interim order directing deposit towards duty amount; Applicability of Circular No. 625/16/2002-CX; Valuation of telephone sets u/s 4 or 4A of the Central Excise Act, 1944; Binding nature of circulars issued by CBEC.
Interim Order Modification: The applicant sought modification of an interim order directing deposit of Rs. 50 lakhs towards duty amount, citing Circular No. 625/16/2002-CX issued by the Central Board of Excise & Customs as relevant to the case. Valuation of Telephone Sets: The appellant contended that sale of telephone sets to the Department of Telecommunication should be assessed u/s 4 of the Central Excise Act, 1944, not u/s 4A, as there were no retail sales involved in the bulk transactions. The appellant relied on a circular clarifying valuation of telephone instruments supplied in bulk to the Telephone Department. Circular's Binding Nature: The Revenue argued that despite the circular being issued after the appellant's actions, it could still contend for assessment under Section 4A. However, the Tribunal held that the circular's binding nature has been upheld by the Apex Court, stating that Revenue cannot challenge views in such circulars even if open to challenge by the assessee, citing relevant Supreme Court decisions. Judgment: The Tribunal allowed the Miscellaneous Application, set aside the impugned order, and allowed the appeal based on the appellant's reliance on the circular to support the application of Section 4 for valuation of telephone sets, emphasizing the binding nature of CBEC circulars as per Supreme Court decisions.
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