M/S. SUCHITRA COMPONENTS LTD. vs. COMMISSIONER OF CENTRAL EXCISE, GUNTUR

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C.A. No.-003596-003596 - 2005Supreme Court17 January 20071 pages
For Respondent: B. KRISHNA PRASAD
AI SummaryAllowed

What did the Supreme Court hold?

The Supreme Court held that a beneficial circular should be applied retrospectively, while an oppressive circular should be applied prospectively. The appellant was thus liable to pay duty from the date of the show cause notice, not an earlier date ordered by the Tribunal.

What were the facts?

The appellant, Suchitra Components Ltd., challenged an order of the Tribunal regarding the date from which excise duty was payable. The issue revolved around the retrospective or prospective application of a beneficial circular.

What were the issues?

The primary issue was whether a beneficial circular issued by the excise authorities should be applied retrospectively or prospectively, impacting the period for which duty was payable.

Which sections of the Income-tax Act were involved?

Not explicitly mentioned in the provided text, but the context relates to excise duty and circulars.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 1 CASE NO.: Appeal (civil) 3596 of 2005 PETITIONER: SUCHITRA COMPONENTS LTD RESPONDENT: COMMISSIONER OF CENTRAL EXCISE,GUNTUR DATE OF JUDGMENT: 17/01/2007 BENCH: Dr. AR. LAKSHMANAN & V.S. SIRPURKAR

JUDGMENT: JUDGMENT O R D E R This appeal is directed against the final order no.204/05- NB-A dated 14th January, 2005 passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi in Appeal No.E/3422/93-NB-A.

We have heard Mr. A.R. Madhav Rao, learned counsel for the appellant and Mr. K. Radhakrishna, learned Senior Counsel for the respondent. We have perused the orders passed by the lower Authorities and also of the Tribunal.

The point raised by the learned counsel for the appellant is covered by the recent judgment of this Court in Civil Appeal No.4488 of 2005, Commissioner of Central Excise, Bangalore versus M/s. Mysore Electricals Industries Ltd., reported in 2007 (204) E.L.T. 517. In the said Judgment, this Court held that a beneficial circular has to be applied retrospectively while oppresive circular has to be applied prospectively. Thus, when the circular is against the assessee, they have right to claim enforcement of the same prospectively.

In view of the submission made by the learned counsel for the appellant and also of the judgment of this Court in C.A.

No.4484/05 (supra), the appellant is liable to pay the duty from 29.8.1990 i.e. from the date of issue of the show cause notice and not from 1.3.1990 as ordered by the Tribunal.

The Civil Appeal stands allowed on the above terms. No costs.

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