Amrit Banaspati Co. Ltd. vs Union of India (UOI)

1.By this writ petition, the petitioner prays for a declaration that the Notification No. 39/89, dated 25th August, 1989 is illegal, ultra virus and bad in law and null and void and the petitioner has further sought directions to quash the impugned orders/directions dated 30th August, 1989. Further, direction is sought by the petitioner to permit the petitioners to utilise the accumulated and accrued money credit balance standing to the credit of petitioners as on 25th August, 1989 against payment of the excise duty on the finished excisable goods, i.e., vanaspati/soaps. The petitioner has also sought a declaration that the petitioner is in law entitled to utilise the accrued money credit balance standing to the credit of the petitioner as on 30th August, 1989 under Notification No. 27/87 simultaneously along with money credit which accrues to the petitioner under Notifications 45/89 and 46/89, dated 11th October, 1989 and also issue of directions deemed fit in the facts and circumstances of the case.

Both counsel agree that this writ petition is squarely covered by the judgment dated 30-11-1990 of the Division Bench delivered in Hindustan Lever Ltd. v. Union of India and Ors. (Civil Writ Petition No. 90/90 and CM 134/90).

Accordingly, I direct the respondents to permit the petitioner t6 utilise the credit of the money earned by them as a result of hydrogenation of duty paid inputs before the notifications in question came to be rescinded for payment of excise duty on manufacture of vanaspati or soap, as the case may be. These benefits will be available to the petitioners in addition to the benefits which have again been made available to them under Notification Nos. 45/89 and 46/89 dated 11th October, 1989. Consequent adjustments also be made as a result of the above direction in the P.L. Accounts of the petitioner. Rule is made absolute. Parties to bear their own costs.