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Calcutta High Court (Appellete Side)

Mcpi Pvt. Limited vs Union Of India & Ors on 19 September, 2025

19.09.2025
sayandeep
Sl. No. 1583-1584
ML
Ct. No. 05




                                             WPA 18133 of 2022
                                                   With
                                               CAN 1 of 2024
                                                   With
                                               CAN 2 of 2025
                                              MCPI Pvt. Limited
                                                      Vs.
                                             Union of India & Ors.
                                                 With
                                         WPA 5513 of 2021
                                       MCPI Pvt. Limited & Anr.
                                                  Vs.
                                        Union of India & Ors.


                          Mr. Abhratosh Majumder, Sr. Advocate
                          Mr. Rahul Dhanuka
                          Ms. Sreeja Chakraborty
                                                        ..... for the petitioners

                          Mr. Vipul Kundalia, Sr. Advocate
                          Ms. Satabdi Sen
                                                     .... For the CGST authority


                    1. Challenging several show cause notices under the

                      provisions of Section 11A of the Central Excise Act,

                      1944    (hereinafter    referred   to   as   the   said   Act)

                      demanding      differential     duty    along      with   the

                      consequential orders from the subject matter of

                      challenge before the customs excise and service tax

                      appellate tribunal eastern zonal Bench, Kolkata (in

                      short the "tribunal"). In connection with the said matter,

                      the tribunal by an order dated 5th October, 2009 was of the

                      view that the said case was not a fit case for total waiver of

                      duty. However, since according to the tribunal, the

                      show cause notice dated 4th March, 2003 for the

                      period from April 2000 to January 2002 of Rs.
                                                  WPA 18133 of 2024
                                                  WPA 5513 of 2021




   11,27,94220/-          was,   prima      facie,   time    barred

   accordingly, the demands in the other               show case

   notices which were within the               normal period of

   limitation were sustained.

2. Having regard thereto, the petitioner in the interest of

   the revenue was directed to deposit Rs. 19.42 crores.

   It was further provided that upon payment the

   remaining amount of duty, interest and penalty shall

   be waived and the recovery stayed. In compliance of

   such direction, the petitioner claims to have duly

   deposited the said amount.               The aforesaid appeal

   finally came to be disposed of by the tribunal by an

   order dated 28th March, 2019. The Tribunal by taking

   note of the case made out had in effect declared that

   the appellant shall not be entitled to the benefit of

   revenue neutrality and accordingly it had upheld the

   demand for the differential duty on merit. However,

   insofar as the demand for duty beyond normal time

   limit   is    concerned,      the   same     was    set   aside.

   Consequential penalties were also set aside.              In the

   interregnum, however, on the basis of a recovery

   notice issued on 4th August, 2022, the sum of Rs.

   169434730 was recovered from the petitioners' bank

   account by debiting the same. Challenging the above

   recovery, the aforesaid writ petition has been filed.

   The petitioner had since applied before the tribunal

   seeking      for   a    clarification.   However,    when the

   above matter came up for consideration on 30th



                                  2
                                                WPA 18133 of 2024
                                                WPA 5513 of 2021




  August, 2022, a Coordinate Bench of this Court was

  pleased to request the tribunal to dispose of such

  application for clarification filed by the petitioner

  expeditiously after giving an opportunity of hearing to

  the   interested   parties.       Insofar   as   the   recovery

  proceedings are concerned, the same were made

  subject to the order to be passed by the tribunal as

  well as the final order to be passed in the writ petition.

3. The aforesaid application for clarification has since

  been disposed of by the Tribunal by its order dated

  31st March, 2023. The relevant portion is extracted

  below:




                                3
     WPA 18133 of 2024
     WPA 5513 of 2021




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4. After the aforesaid clarification was offered, the

  petitioner has come up by way of this connected

  application, inter alia, praying for disbursal of refund

  of Rs. 1583859 recovered from the petitioner. By an

  order dated 11th April, 2025 affidavits were invited

  from the respondents. Pursuant to such direction, the

respondent Nos. 2, 3 and 4 have filed an affidavit-in- opposition in Court today which is taken on record. The affidavit-in-reply filed by the petitioners in Court today is also taken on record.

5. Mr. Majumdar, by drawing attention of this Court to paragraph 8 of the aforesaid affidavit-in-opposition would submit that though the respondents have 5 WPA 18133 of 2024 WPA 5513 of 2021 denied and disputed the sum of Rs. 15,63,80,959/- to be due, however, they have admitted that a sum of Rs. 14,27,61, 282/- is actually payable.

6. Having regard thereto, at this stage he only seeks that the aforesaid sum which has been admitted and acknowledged by the respondents be disbursed in favour of the petitioners.

7. Mr. Kundalia, learned senior advocate representing the respondents on the other hand would submit that the aforesaid acknowledgement is subject to the petitioner applying and complying with the other statutory formalities.

8. Having heard the learned advocates appearing for the respective parties, I am of the view that on the basis of the disclosure made in the affidavit-in-opposition of the respondent Nos. 2, 3 and 4 to the connected application being CAN 2 of 2025, the application can be disposed of by permitting the petitioner to make an application in requisite format. If such application is filed within a period of 10 days from date, the respondents shall be obliged to process the same within a period of eight weeks thereafter.

9. Respondents are directed to supply to the petitioner with the copy of the prescribed proforma for applying for refund within 7 working days from the date of communication of this order.

10. The balance claim of the petitioner shall be considered with the writ petition. 6

WPA 18133 of 2024 WPA 5513 of 2021

11. In view of disposal of the application being CAN 2 of 2025, the application being CAN 1 of 2024 which is an application for early disposal of the writ petition be also disposed of.

(Raja Basu Chowdhury, J.) 7