SC directs Fiat to pay Rs 311 cr as excise duty
The bench in its August verdict, while setting aside the excise tribunal’s order, had directed the car maker to pay duty for Uno cars sold at a price lower than the cost price to penetrate the market.
Upholding the department’s stand, the Supreme Court had clarified that central excise duty was chargeable on manufacture or production of goods and not only on sale price.
As per the judgment, Fiat will have to pay around Rs 311 crore and Premier will pay more than R49 crore as outstanding excise duty.
A bench comprising Chief Justice Altamas Kabir and justices P Sathasivam, GS Singhvi, H L Dattu and Anil R Dave said that “in our opinion, no case is made out within the parameters indicated in the decision of this Court in Rupa Ashok Hurra vs Ashok Hurra & Anr., reported in 2002 (4) S.C.C.388. Hence, the Curative Petitions are dismissed”.
The apex court had held that price of cars was not normal price as the same was not based on manufacturing cost and manufacturing profit, but was fixed at a lower price to penetrate market. Besides, the price charged from customer was not sole consideration as main reason for assessee to sell cars
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