Excise Law - Valuation of Physician Samples – Appeal against Tribunal's order – Appellant contended that physician samples, prohibited from being sold under the Drugs and Cosmetics Act, 1940, should not be subject to excise duty – Supreme Court held that excise duty is payable on manufactured goods whether or not they are sold, and the statutory prohibition on sale does not affect marketability for excise purposes – Physician samples are liable to excise duty, and their value should be assessed on a pro-rata basis. [Paras 1-42]

Marketability – Legal Interpretation – Analysis – Held – For excise duty to be levied, goods must be marketable, i.e., capable of being sold – Statutory prohibition on the sale of physician samples does not negate their marketability for excise purposes as they are produced for distribution – The twin test for excisability includes manufacture and capability of being sold. [Para 7-22]

Decision – Appeals Partly Allowed; Pro-rata Valuation Upheld – Supreme Court allowed the appeal in part, directing valuation of physician samples on a pro-rata basis – Remanded the matter to the adjudicating authority for reassessment accordingly – Other appeals dismissed. [Para 42]

Taxation Law - Refund of Excess Tax Paid – Civil Appeal – KGST Act – CST Act – Article 265, 286 of the Constitution – Tax refund claim by non-dealer – Supreme Court dismisses appeal for refund by non-dealer on the basis of clear statutory provisions limiting refunds to dealers only – No proactive stance taken despite overpayment to avoid breach of statutory interpretation principles.

Taxation Law – Refund Claim Under KGST Act – Interpretation of Statutes – Section 44 of the KGST Act stipulates that only dealers are entitled to claim a refund for excess tax paid – Appellant, not being a dealer, is not entitled to a refund despite overpayment – Appeal dismissed based on unambiguous statutory language – Equity considerations and proactive interpretations deemed inapplicable in this context.

Exemption Under CST Act – Section 5(3) CST Act – Penultimate Sale – Export Transactions – Requirement of Agreement or Evidence – Claim for exemption under CST Act for penultimate sales denied in absence of agreement or evidence at the time of auction sale – Clear evidence of linkage to export necessary for exemption under Section 5(3) – Claim for refund also dismissed as no tax demand was made on appellant.

Decision:

Refund of Tax Paid to Seller – Appeal Dismissed – Court upholds findings of lower authorities that Section 44 of the KGST Act restricts refunds to dealers only – Despite recognizing overpayment, refund to non-dealer cannot be sanctioned due to clear statutory mandate – No interference warranted with factual findings of lower authorities.

Central Excise - Duty on Captive Consumption - Manufacture for Internal Use – Appeal against order demanding duty on plant and machinery, including testing equipment, manufactured for internal use by appellant – Appellant claimed activities were for research and development and not manufacturing – Supreme Court found that equipment was indeed manufactured and was saleable and marketable, confirming the duty demand. [Paras 1-13]

Research and Development vs. Manufacture - Captive Consumption – Held: Mere assembly for research and development, if resulting in saleable and marketable goods, amounts to manufacture – As the appellant admitted in balance sheet and director's report that testing equipment was developed to avoid imports, it was considered manufacturing. [Para 10]

Extended Period of Limitation - Suppression of Facts - Non-disclosure of manufacturing activity to the department justified the invocation of the extended period of limitation for duty demand. [Para 12]

Decision: Appeal dismissed. Duty demand confirmed. [Para 13]

Administrative Law – Disciplinary Action – Compulsory Retirement – Judicial Officer found guilty of traveling without ticket on three occasions – Appellant claimed that magistrates were not required to buy tickets for train travel – Appellant caught without ticket on 21.2.1997, 13.5.1997, and 5.12.1997 – Misconduct charges established against the appellant – High Court dismissed writ petition challenging the disciplinary action – Supreme Court upheld the compulsory retirement as proportionate to the misconduct. [Paras 2-30]

Judicial Conduct – Standards of Propriety – Held – Judicial officers are expected to uphold the highest standards of integrity and conduct – Appellant's behavior in traveling without tickets and subsequent misconduct towards Railway staff deemed unbecoming of a judicial officer – Punishment of compulsory retirement considered appropriate and not disproportionate. [Para 29]

Decision – Appeal Dismissed – Supreme Court affirmed the decision of the High Court and the disciplinary authority, finding the charges of misconduct proved and the penalty of compulsory retirement justified. [Para 31]

Taxation - Service Tax Liability - Airports Authority of India Act and Finance Act - Appellant authorized by AAI to collect airport admission ticket charges - Whether appellant liable to pay service tax on such collections - High Court directed verification if AAI had paid the service tax - Appellant to pay service tax if AAI had not paid - Supreme Court upholds High Court’s decision - Appellant deemed liable under statutory definition as authorized service provider - Appeal dismissed. [Paras 1-8]

Taxable Service - Definition and Liability - Finance Act, 1994 - Analysis of Clause 105(zzm) of Section 65 - Held - Appellant steps into the shoes of AAI for services provided based on authorization - Liability to pay service tax affirmed - No merit in contention that AAI alone was responsible for service tax. [Para 8]

Decision - Service Tax Liability Affirmed - Court dismisses the appeal - Holds appellant liable for service tax as per statutory provisions - Emphasizes appellant's role as authorized person under AAI's licence agreement. [Para 8]

Service Law - Regularization of Temporary Employees – Civil Appeals against High Court's direction to regularize services and provide parity in pay for employees in government and aided hostels – Supreme Court reaffirms principles that regularization requires appointments through regular recruitment against sanctioned posts – High Court’s directions found to be inconsistent with constitutional principles and precedents – Appeals allowed, High Court orders set aside. [Paras 1-13]

Service Law - Parity in Pay – Analysis – Temporary employees, including part-time cooks and chowkidars, in government hostels not entitled to parity in pay with regular employees – Such claims invalid without legal right under contract or statute – Parity principle under Articles 14 and 16 of Constitution not applicable to temporary, irregular appointments. [Para 8]

Service Law - Aided Hostels – Analysis – Employees of aided hostels not deemed government employees – Reliefs of regularization and parity in pay against government cannot be sustained – Aided hostels run by private organizations, government's role limited to grants for student welfare. [Para 10]

Decision:

Regularization and Parity in Pay Denied – Appeals allowed. High Court orders set aside. Respondents’ writ petitions dismissed. [Para 13]

Taxation Law - Refund of Excess Tax Paid – Civil Appeal – KGST Act – CST Act – Article 265, 286 of the Constitution – Tax refund claim by non-dealer – Supreme Court dismisses appeal for refund by non-dealer on the basis of clear statutory provisions limiting refunds to dealers only – No proactive stance taken despite overpayment to avoid breach of statutory interpretation principles.

Taxation Law – Refund Claim Under KGST Act – Interpretation of Statutes – Section 44 of the KGST Act stipulates that only dealers are entitled to claim a refund for excess tax paid – Appellant, not being a dealer, is not entitled to a refund despite overpayment – Appeal dismissed based on unambiguous statutory language – Equity considerations and proactive interpretations deemed inapplicable in this context.

Exemption Under CST Act – Section 5(3) CST Act – Penultimate Sale – Export Transactions – Requirement of Agreement or Evidence – Claim for exemption under CST Act for penultimate sales denied in absence of agreement or evidence at the time of auction sale – Clear evidence of linkage to export necessary for exemption under Section 5(3) – Claim for refund also dismissed as no tax demand was made on appellant.

Decision:

Refund of Tax Paid to Seller – Appeal Dismissed – Court upholds findings of lower authorities that Section 44 of the KGST Act restricts refunds to dealers only – Despite recognizing overpayment, refund to non-dealer cannot be sanctioned due to clear statutory mandate – No interference warranted with factual findings of lower authorities.

Central Excise - Duty on Captive Consumption - Manufacture for Internal Use – Appeal against order demanding duty on plant and machinery, including testing equipment, manufactured for internal use by appellant – Appellant claimed activities were for research and development and not manufacturing – Supreme Court found that equipment was indeed manufactured and was saleable and marketable, confirming the duty demand. [Paras 1-13]

Research and Development vs. Manufacture - Captive Consumption – Held: Mere assembly for research and development, if resulting in saleable and marketable goods, amounts to manufacture – As the appellant admitted in balance sheet and director's report that testing equipment was developed to avoid imports, it was considered manufacturing. [Para 10]

Extended Period of Limitation - Suppression of Facts - Non-disclosure of manufacturing activity to the department justified the invocation of the extended period of limitation for duty demand. [Para 12]

Decision: Appeal dismissed. Duty demand confirmed. [Para 13]

Administrative Law – Disciplinary Action – Compulsory Retirement – Judicial Officer found guilty of traveling without ticket on three occasions – Appellant claimed that magistrates were not required to buy tickets for train travel – Appellant caught without ticket on 21.2.1997, 13.5.1997, and 5.12.1997 – Misconduct charges established against the appellant – High Court dismissed writ petition challenging the disciplinary action – Supreme Court upheld the compulsory retirement as proportionate to the misconduct. [Paras 2-30]

Judicial Conduct – Standards of Propriety – Held – Judicial officers are expected to uphold the highest standards of integrity and conduct – Appellant's behavior in traveling without tickets and subsequent misconduct towards Railway staff deemed unbecoming of a judicial officer – Punishment of compulsory retirement considered appropriate and not disproportionate. [Para 29]

Decision – Appeal Dismissed – Supreme Court affirmed the decision of the High Court and the disciplinary authority, finding the charges of misconduct proved and the penalty of compulsory retirement justified. [Para 31]