Commissioner of Central Excise-IV, Kolkata vs Madura Coats Ltd.

Civil Appeal No. 7862 of 2009

We have heard learned counsel for the parties. The dispute between the rival parties was, whether duty was deductible under Heading No. 59.09, of the Schedule to the Central Excise Tariff Act (as per classification list effective from 1-8-1986). The respondent throughout claimed, that the item in question fell under Heading No. 59.02, where only basic excise duty was payable, and no special excise duty was payable. It was for the first time, that a show cause notice dated 25-2-1993 was issued to the respondent-assessee, whereunder the respondent-assessee was informed that excise duty was payable under Heading No. 59.09 (of the classification list effective from 1-8-1986). The respondent-assessee was called upon to pay duty under the above Heading. In compliance, the respondent-assessee paid differential excise duty by calculating the same under Heading 59.09 for the period from February, 1988 to August, 1992. It is not a matter of dispute that the above issue has been settled inasmuch as, the assessee is liable to pay duty in terms of Heading No. 59.02.

The controversy in the present civil appeal, pertains to the refund of the excess differential amount, recovered by the respondent-assessee from the Excise Department, to the consumers. The issue that would arise for consideration is, whether the respondent assessee has indeed recovered the excess amount from the consumers. Insofar as the instant aspect of the matter is concerned, we are satisfied, that there was no question of assessee having recovered the excess amount from the consumers. This is so because, the assessee throughout asserted, that so far as Tyre Cord Fabrics are concerned, the duty payable was under Heading No. 59.02 of the classification effective from 1-8-1986 whereunder only basic excise duty was payable. In view of the above, it is obvious that the assessee did not recover any duty from the consumers under Heading No. 59.09 at least till the show cause notice was issued on 25-2-1993. Accordingly, whatever amount was recovered from the assessee by the appellants, could not have been required to be refunded to the consumers.

For the reasons recorded hereinabove, we find no merit in the instant appeal and the same is accordingly dismissed.

S.L.P. (C) No. 35919 of 2011

In view of the decision rendered by this Court in Commissioner of Central Excise, Hyderabad v. I.T.C. Ltd. 2005 (179) E.L.T. 15 (S.C.), the instant SLP is dismissed.

S.L.P. (C) CC No. 5331 of 2013

Delay condoned. In view of the order passed in SLP(C) No. 35919 of 2011, the instant SLP is dismissed.