Case overruled- then why appearing??

Subhendu S Sanyal (B.Com(C.S.),CA FINAL ) (664 Points)

23 March 2014

Dear All Friends,

I noticed a unique case law in Indirect Tax paper (under Central Excise) which has overruled /nullified by the Finance Act, 2012 but the same same is still appearing in Selected Case laws book published by ICAI(relevant for May 2013 and Nov 2013 Examinations) as well as Selected Case laws book(relevant for May 2014 and Nov 2014 Examinations).. I would like to share the same-

Case Law-(Given in Selected Case Laws of book for both 2012 & 2013 edition- pg 7 & pg 119 respectively)

CCE v GTC Industries Ltd. 2011 (266) ELT 160 (Bom.)

Facts: A roll of aluminium foil was cut horizontally to make separate pieces of the foil and word 'PULL' was embossed on it. Thereafter fixed number of cigarettes were wrapped in it. An aluminium foil being resistant to moisture was used as a protector for the cigarettes and to keep them dry. The Department contended that the process of cutting and embossing aluminium foil amounted to manufacture. Since, the aluminium foil was used asa shell for the cigarettes to protect them from moisture; the nature form and purpose of foil were changed.

Decision:

The Bombay High Court held that cutting and embossing did not transform aluminium foil into distinct and identifiable commodity. It did not change the nature and substance of foil. The said process did not render anymarketable value, only made it usable for packing. There were no records to suggest that cut to shape /embossed aluminium foils used for packing cigarettes were distinct marketable commodity. Since, foil was cut to size in a continuous process, process did not amount to manufacture as per Sec.2 (f) of Central Excise Act, 1944.

Now the Ammendment made by Finance Act 2012-( Given in Pg 10 of Supplementary Study Material for Indirect Tax for May 13 & Nov 13 Examinations)-

Now my question is the case law still relevant in the post ammendment scenairo..? If No, then why has ICAI not removed the same in the Selected Case Laws Book..?

Also I find that many of the selected cases have already been tested in 2010 & 2011 examniations ...Still it is being published..Why..??