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Excisability of Hot Asphalt Mix
Central Excise Circular No. 623 dated
25th February 2002
A doubt has been raised regarding
excisability of Hot Asphalt Mix used in making roads.
2. The matter has been
examined in consultation with Ministry of Law. Their opinion is that the Bombay
High Court in its judgement dated 30.7.1991 in the case of Prakash Construction
and Engineering Company Vs. Union of India has already decided the issue that
the process of preparation of Asphalt Hot Mix does not amount to manufacture as
contemplated by Section 2(f) of the Central Excise Act. The order of the Bombay
High Court was accepted by the Department.
3. Ministry of Law has
further stated that the principle of strict construction is applicable to taxing
statutes. In fiscal legislation the transaction cannot be taxed on any doctrine
of the �circumstances of the matter� as distinguished from its legal
signification, for a subject is not liable the tax on �sprit of the law� or
�by inference or by analogy�. In view of above, Ministry of Law has opined
that the Asphalt Hot Mix does not amount to �manufacture� as contemplated by
Section 2(f) of the Central Excise Act, 1944.
4. Board has accepted the
opinion of Law Ministry. Accordingly, it is clarified that Hot Asphalt Mix is
not an excisable commodity.
5. The above clarification
may be brought to the notice of the lower field formations and trade interest
may also be suitably advised.
6. All pending disputes/
assessments on the issue may be settled in the light of the above guidelines.
Receipt of this circular may be please acknowledged.
7.
Hindi version will follow.
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