Case Details: Natural Lights Pvt. Ltd. vs. Principal Commissioner, Central Goods and Service Tax and Central Excise, Jaipur (2026) 41 Centax 402 (S.C.)
Judiciary and Counsel Details
- Manoj Misra & Manmohan, JJ.
- Shri Shrey Kapoor, AOR for the Petitioner.
Facts of the Case
The assessee removed manufactured goods under ARE-1, claiming the exemption available for export clearances. The department confirmed the duty demand on the grounds that the goods were not exported but were sold to an entity in the domestic market. The assessee contended that an export company had received an order from an overseas importer, which was sublet to another entity and thereafter to the assessee, and that the goods were sent for eventual export through such a chain. The Rajasthan High Court upheld the order of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and held that the finding that goods were not exported but sold in the domestic market was a finding of fact based on documents and no question of law arose. The assessee thereafter filed a special leave petition. The matter was accordingly placed before the Hon’ble Supreme Court.
Supreme Court Held
The Hon’ble Supreme Court held that no good ground was made out for interference with the impugned judgment in exercise of jurisdiction under Article 136 of the Constitution of India. The Court thereby affirmed the view that the goods cleared under ARE-1 had not been exported and had instead been sold in the domestic market. It was consequently accepted that the assessee was not entitled to the claimed duty exemption on such removals. Accordingly, the special leave petition was dismissed.
List of Cases Reviewed
- Natural Lights Pvt. Ltd. v. Commissioner — (2025) 37 Centax 415 (Del.) — Affirmed [Para 1]
