Finance Act, 1982

J.K. Cotton Spinning & Weaving Mills Ltd., a composite mill, produced yarn as an intermediate product and then wove it into fabrics on the same premises. The issue was whether the yarn was liable to central excise duty under the amended Rule 9 and Rule 49 of the Central Excise Rules, 1944, which were given retrospectiv…

The appellant, Commissioner of Central Excise, challenged the assessee's claim that sales tax collected under the Rajasthan Sales Tax Incentive Scheme could be deducted from the assessable value for excise duty. The assessee relied on CBEC circular dated 12‑03‑1998, arguing that the retained 75% of sales tax was an inc…

The Collector of Central Excise issued a demand that Banswara Syntex Ltd. pay excise duty on single‑ply yarn used for doubling or multifolding, alleging short payment. The company argued that duty should be payable only after the yarn was doubled, contending that the process did not create a new product and that waste …

Mis Modipon Fibre Company, a manufacturer of nylon and polyester yarn, cleared its yarn to depots including Surat in Gujarat. A Gujarat notification of 19‑Oct‑1993 exempted yarn sold to special manufacturers in backward areas, allowing a turnover tax (TOT) rate of 0.5% instead of the normal 2%. The assessee claimed a 2…

K. Mohan & Co. imported metallised polyester film rolls from Japan and paid customs duty and countervailing duty under section 3 of the Customs Tariff Act. The firm claimed a refund on the basis of notification No. 228/76 issued under section 25(1) of the Customs Act, which exempts "articles made of plastics" except th…

The Supreme Court examined the validity and mandatory nature of Rule 1‑D of the Wealth Tax Rules, which prescribes a break‑up formula for valuing unquoted equity shares of companies (excluding investment and managing‑agency companies). It held that the rule is a perfectly valid piece of delegated legislation and must b…

Continental Construction Ltd., a civil engineering firm, entered into several overseas construction contracts, notably the Karkh Water Supply project in Iraq, and sought deductions under Section 80‑0 of the Income‑Tax Act for payments received as royalties, fees or similar. The Central Board of Direct Taxes (CBDT) appr…

The petitioners, Ahmedabad Manufacturing and Calico Printing Co. Ltd. and others, challenged the levy of central excise duty on the weight of yarn after it had been sized for weaving, contending that duty should be based on the unsized yarn. The High Court had ordered a refund, but the Government retrospectively amende…

The Assistant Collector of Central Excise appealed against Bata India Ltd. alleging that the manufacturer could not claim exemption under a notification that exempted footwear valued up to Rs.60 per pair when its wholesale price exceeded that limit. Bata argued that by deducting the 10% excise duty from the wholesale p…

The petitioners, a consortium of newspaper publishers, challenged the imposition of customs and auxiliary duties on imported newsprint under the Customs Act, 1962 and the Customs Tariff Act, 1975, arguing that the levy infringed their freedom of speech and expression (Art. 19(1)(a)) and the right to practice a professi…

The appellant, a textile mill, was served with two show‑cause notices under Section 11‑A of the Central Excises and Salt Act for alleged excise duty on yarn removed within the factory for the period November 1980 to December 1981. The Delhi High Court had stayed the effect of a circular dated 24‑September‑1980, and the…

The Barnagore Jute Factory and other jute manufacturers challenged the levy of a cess on jute yarn and twine under the Industries (Development and Regulation) Act, 1951, arguing that jute yarn was not covered by Heading 23(2) of the First Schedule, that intermediate products could not be taxed, and that the cess could …