Bombay High Court
International Electronics Mfg. Co. And ... vs Union Of India And Others on 18 March, 1986
Equivalent citations: 1986(8)ECC166, 1986(25)ELT630(BOM)
Author: S.P. Bharucha
Bench: S.P. Bharucha
JUDGMENT
1. The petitioners imported synthetic waste between November, 1983 and January, 1984. The waste was assessed by the customs authorities under item 18IV of the Central Excise Tariff and an amount of Rs. 21,39.122 was collected from the petitioners as and by way of additional duty.
2. On 4th October, 1984, 7th October, 1984 and 12th October, 1984, the petitioners' advocate made claims for refund of the additional duty paid on the basis of a judgment and order of the Collector of Customs (Appeals), New Delhi, by which it was held that synthetic waste did not fall within the purview of item 18IV. The claims were rejected on 3rd December, 1984 on the ground that they were not received within 6 months from the date of payment of duty. The appeals filed against this order were dismissed upon the same ground.
3. This petition seeks the quashing of the orders dated 30th October, 1984 and 3rd December, 1984 and the orders in appeal.
4. By his judgment in O.O.C.J. Writ Petition No. 1802 of 1983 M/s. R. K. Synthetics and Fibers Pvt. Ltd. v. Union of India dated 3rd December, 1985, Kurdukar, J. has held that the synthetic waste is not assessable under item 18IV but under item 68 of the central excise tariff.
5. In Atul Products Ltd. v. Union of India, 1985 (22) ELT 714, Mrs. Manohar, J. has held that where duty has been recovered which, in law, is not leviable, the recovery is without authority of law. After considering several judgments including the judgment of the Supreme Court in Shri Vallabh Glass Works v. Union of India , it was held that refund of all such excess payments made within a period of 3 years prior to the date on which the petition was filed had to be ordered.
6. Accordingly, the respondents shall, within a period of 8 weeks from today, refund to the petitioners the differential additional duty collected by them within a period of 3 years prior to the date on which the petition was filed on synthetic waste as assessed under item 18IV of the central excise tariff and as assessable under item 68 thereof. In the event that the payment is not made within 8 weeks, the petitioners shall be entitled to apply for interest on the amount to be refunded.
7. No order as to costs.
8. Rule accordingly.