Finance Act, 1996

The dispute concerned the classification of technical grade pesticides (TGP) under the Central Excise Tariff Act, 1985. Prior to 1996, TGP and insecticides in bulk were placed in tariff heading 38.08. Amendments to Chapter 38 in 1996 and 1997 and a 1997 circular directed that such chemicals be classified under Chapters…

The Union of India challenged two show‑cause notices issued to Mahindra & Mahindra Ltd. for alleged short payment of excise duty for the years 1982‑85, contending that the Department had misapplied Section 4 of the Central Excise Act. The High Court set aside the notices, holding that the post‑1996 amendment to Section…

Kushal Fertilisers Ltd, a manufacturer of MS conduit pipes, claimed exemption from central excise duty under Notification No.202/88 but failed to obtain a licence or file a declaration under Rule 174. The Commissioner issued a show‑cause notice under Section 11A and Rule 209A alleging that the company suppressed the fa…

M/s. Sanghvi Reconditioners Pvt. Ltd., a ship‑repair unit, was found to have imported engineering cargo as "ship spares" and then sold the goods to a third party, thereby fraudulently claiming exemption under Notification No.211/83. The Customs Commissioner demanded duty, penalty and interest; the appellant withdrew it…

M/s. Jaswal Neco Ltd., a pig‑iron manufacturer, imported low‑ash metallurgical coke between June and August 1998 under export‑obligation exemptions. It failed to fulfill the export condition and was assessed a demand of Rs 7.21 crore comprising basic customs duty, special customs duty, special additional duty, and anti…