In Brief
Universal Ferro & Allied Chemicals Ltd., a 100% export-oriented unit, processed manganese ore supplied by Tata Iron & Steel (TISCO) under a job-work agreement. The Revenue disputed the applicability of concessional excise duty on goods sold to TISCO, alleging violation of EXIM Policy. The Supreme Court held that: (1) under the Central Excise Act, 'sale' includes transfer of possession for valuable consideration (not limited to property transfer); (2) the job-work was permitted under EXIM Policy paragraph 9.9(b) with Development Commissioner approval; and (3) Exemption Notification 8/97 specifically applies to EOU goods allowed to be sold in India under EXIM Policy. The Court dismissed the Revenue's appeal and upheld the CESTAT's reversal of the demand for duty."
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