The dismissal of S.L.P. filed by M/s. Durga Cement Co. in the Supreme Court against the Patna High Court order in C.W.J.C. No. 209/87(R) - Information regarding - Action to be taken - Central Excise - 35/89

The dismissal of S.L.P. filed by M/s. Durga Cement Co. in the Supreme Court against the Patna High Court order in C.W.J.C. No. 209/87(R) - Information regarding - Action to be taken Circular No. 35/89 Dated 16-5-1989 [From F. No. 109/24/88-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : The dismissal of S.L.P. filed by M/s. Durga Cement Co. in the Supreme Court against the Patna High Court order in C.W.J.C. No. 209/87(R) - Information regarding - Action to be taken. In a Press Note issued on 11-1-1979, the Ministry of Industry had declared that the mini cement plants will be allowed a rebate in the payment of excise duty up to 50% for a period of five years. This declaration was made by the Ministry of Industry even before any suitable exemption Notification giving effect to the declaration could be issued. It was only on 30-5-1979 that the Government issued Notification No. 194/79-C.E., dated 30-5-1979, prescribing a concessional rate of duty of Rs. 32.50 per M.T. on cement manufactured in a mini cement plant. This Notification was due to expire on 31-3-1984. However, on 1-3-1983 itself, this Notification was rescinded and a new Notification No. 60/83-C.E., dated 1-3-1983 was issued, prescribing a concessional rate of duty of Rs. 170/- per M.T. on cement. This Notification expired on 31-3-1984 and this partial exemption scheme for mini cement plants was never revived thereafter. However, some manufacturers, on the basis of the said Press Note issued by the Ministry of Industry, contended that, regardless of the existence of any Notification issued under Rule 8(1) of Central Excise Rules, 1944 allowing a rebate of 50% in the rate of excise duty payable on cement, any mini cement plant was lawfully entitled to a rebate of 50% in the rate of excise duty, on cement produced by it for a period of five years from the date of commercial production of cement. On this issue, M/s. Durga Cement Co. filed C.W.J.C. No. 209 of 1987(R) in the Hon'ble Patna High Court (Ranchi Bench). The Patna High Court dismissed the said C.W.J.C. vide their order, dated 23-2-1988. Thereafter, the party filed an S.L.P. in the Supreme Court. The Department filed a counter affidavit. The Supreme Court thereafter, dismissed the party's S.L.P. 2. It is felt that similar cases may be lying pending in different High Courts. It is requested that the above facts should be brought to the notice of the concerned High Courts immediately to obtain the decisions of the High Courts expeditiously in the Department's favour. For copies of all the relevant documents regarding the court case of M/s. Durga Cement Co. v. C.C.E., Patna may please be contacted. 3. The above guidelines may be brought to the notice of lower field formations.