OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE
AHMEDABAD – I
TRADE NOTICE NO. 82/20005
BASIC NO. 78/2005
Sub : Supreme Court Judgment in the case of Union of India
Vs. M/s. Ahmedabad Electricity Co. Ltd. On the subject
of excisability of coal ash(cinder) – m/r.
The Govt. of India, Ministry of Finance, Department of Revenue, CBEC, New Delhi has issued a Circular No. 822/19/2005-CX dated 18th November, 2005 from F.No. 109/3/2000-CX.3 under which it invites your attention to Boards Circular No. 386/19/98-CX dated 7th April, 1998. In this Circular Board has clarified that the Coal (cinder) is an excisable commodity classifiable under Heading No. 2621.00 and is chargeable to appropriate rate of duty. Further, all pending disputes/assessments on the issue were directed to be settled in the light of these guidance.
02. This circular was challenged by M/s. Ahmedabad Electricity Co. Ltd. & others, before the Gujarat High Court who in its judgment dated 04.04.2000, had set aside this Circular. Against the said judgment of Gujarat High Court, Board filed Civil Appeals 2168-2169 of 2001 in the Supreme Court. However, the Supreme Court vide its Judgment dated 29.10.2003 has dismissed the Department’s Civil Appeal. This judgment has since been accepted by the Board.
03. In view of the Apex Court decision against the Department’s circular, the instructions contained in the circular No. 386/19/98-CX dated 7th April, 1998 would no longer be valid in their entirely. The said circular may, therefore, be treated as withdrawn. Pending disputes, if any, may be decided accordingly.
04. The Trade Association/Chamber of Commerce and the Member of the RAC/PGC are requested to bring this to the notice of their members / constituents.
AHMEDABAD – I.
F.No.:IV/16-01/MP/2005-Pt.III Date : 22nd December, 2005.
Encl.: As above.
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