1974 (9) TMI 52 - HC - Central Excise

Summary

Issues:
Claim for refund of excise duty charged by the Assistant Collector, Collector of Central Excise, and Government of India under the Central Excises and Salt Act, 1944.

Analysis:
Five writ applications were filed by Tata Iron and Steel Company Limited (TISCO) seeking to quash orders denying refund of excise duty charged between March to July 1967 over steel ingots despatches. The main case, related to May 1967, was heard with consent of parties. The petitioner appealed under Section 35 of the Act to the Collector, whose dismissal was conveyed in November 1968. A revision application was then filed before the Central Government under Section 36 of the Act, heard by the Joint Secretary to the Government of India in March 1970.

The petitioner claimed exemption under a notification issued by the Central Government under Rule 8 of the Central Excise Rules, 1944. The notification exempted steel ingots produced from fresh unused steel melting scrap from excise duty. The petitioner provided details and evidence to support its claim for exemption, including records of materials received and processes followed in their Steel Melting Shop No. 3.

The Central Government rejected the revision petition in September 1970, stating lack of specific documentary evidence to prove duty paid on the scraps in question. The petitioner argued that it had offered to produce all relevant documents during the revision proceedings but was not given the opportunity. The High Court found that the Central Government's order was passed erroneously without proper consideration of the petitioner's materials and directed the Central Government to allow the petitioner to produce all relevant documents and materials in support of its claim for refund.

The High Court allowed all five writ applications, quashing the Central Government's orders and directing it to consider the petitioner's claim for exemption under the notification. The Court emphasized the importance of providing the petitioner with the opportunity to present relevant documents and materials before making a final decision. No costs were awarded in any of the cases.

In conclusion, the High Court's judgment focused on ensuring procedural fairness and the opportunity for the petitioner to substantiate its claim for refund of excise duty under the relevant notification.