Section 11A - The Legal Chamber

This Supreme Court judgment clarifies that central excise duty is leviable only on movable “goods.” The final assembled boiler, being an immovable plant, is not excisable. Consequently, the value of bought-out items delivered directly to the site cannot be included in the assessable value for duty computation. The extended limitation period for the show-cause notice was also held inapplicable. Facts Of The Case: The appellant, Lipi Boilers Ltd., entered into a contract to design, procure, manufacture, and supply machinery for a steam generating plant, including a 50 TPH boiler. The boiler was manufactured and cleared from the factory in a Completely Knocked Down (CKD) condition upon payment of central excise duty. Certain essential items, such as feed pumps and fans, were purchased duty-...

This Supreme Court judgment reiterates the limited scope of judicial review in disciplinary proceedings. Courts cannot act as appellate authorities to re-appreciate evidence. The standard of proof is preponderance of probability, not strict evidence rules. Interference is only permissible if the finding is perverse, based on no evidence, or violates natural justice. The Tribunal exceeded its jurisdiction under Section 11-A of the Industrial Disputes Act by doing so. Facts Of The Case: The respondent, Ganganarasimhaiah, was a Sub-Staff employee at Canara Bank's V.G. Doddi branch. An investigation revealed serious irregularities, including unauthorized loans and tampering with bank records. Specifically, it was alleged that he facilitated loans for his wife and father without the man...

Tag: Section 11A

Supreme Court: Immovable Plant Not ‘Goods’, Excise Duty Not Levied on Bought-Out Parts

Landmark Ruling: Supreme Court Clarifies Scope of Judicial Review in Employee Disciplinary Matters