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2015 (10) TMI 681 - HC - Central ExciseLevy of additional duty of excise - Whether the man-made fabrics which are excisable goods on which additional duty of excise is payable in terms of section 3(2) of Additional Duties of Excise (Goods of Special Importance) Act, 1957, shall also attract penal provisions of confiscation and penalty as is the case with all other excisable goods finding mention in the schedule to the Central Excise Tariff Act, 1985 - Held that - When all these references are taken up for final hearing, Shri Bhatt, learned advocate appearing on behalf of the Department has fairly conceded that the issue/question referred to this Court is squarely covered against the Revenue by the decision of the Hon ble Supreme Court in the case of Collector of Central Excise, Ahmedabad v. Orient Fabrics (P) Ltd. reported in (2003 (11) TMI 75 - SUPREME COURT OF INDIA) as well as the decision of the Division Bench of this Court in the case of Commissioner of Central Excise and Customs, Ahmedabad v. Aspiaf Textile Mills reported in 2008 (1) TMI 409 - HIGH COURT OF GUJARAT AT AHMEDABAD . - Decided in favour of assessee.
Issues:
Whether man-made fabrics attracting additional duty of excise are subject to penal provisions of confiscation and penalty. Analysis: The High Court of Gujarat, comprising M.R. Shah and K.J. Thaker, JJ., delivered a judgment on a group of references from the Central Excise Department regarding the application of penal provisions to man-made fabrics subject to additional duty of excise. The Court noted that the references raised a common question of law concerning the imposition of penal provisions on man-made fabrics under section 3(2) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The key issue was whether these fabrics should be treated similarly to other excisable goods under the Central Excise Tariff Act, 1985, with respect to confiscation and penalty. During the final hearing, the Department's advocate, Shri Bhatt, conceded that the issue was decisively settled against the Revenue by the Supreme Court's ruling in the case of Collector of Central Excise, Ahmedabad v. Orient Fabrics (P) Ltd. (2004) 1 SCC 597, and a Division Bench decision of the Gujarat High Court in Commissioner of Central Excise and Customs, Ahmedabad v. Aspiaf Textile Mills (2009 (236) E.L.T. 442 (Guj.)). The Court acknowledged the precedents and observed that the question at hand was no longer open to debate, given the clarity provided by the Supreme Court and the High Court's previous decisions on the matter. In light of the established legal position as per the referenced judgments, the Court ruled in favor of the assessee and against the Revenue. Consequently, all the references were disposed of based on the settled interpretation that man-made fabrics subject to additional duty of excise are not liable to the same penal provisions of confiscation and penalty as other excisable goods listed in the Central Excise Tariff Act. The judgment provided a definitive resolution to the issue raised by the Department, aligning with the established legal principles derived from the Supreme Court and the High Court's authoritative decisions.
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