Corn Products Company (India) Ltd. vs Union of India

Pendse, J.—Yesterday, when this petition came up for admission we made it clear to the counsel for the respondents that we propose to dispose of the petition finally at the stage of admission itself as the issue involved is extremely narrow. The Assistant Collector of Central Excise by impugned order dated May 10, 1991 found that the product manufactured by the petitioner is not excisable. After recording this finding the claim for refund was turned down by relying upon decision in Roplas (India) Ltd. and another Vs. Union of India and another, . It is unfortunate that the Assistant Collectors are repeatedly rejecting the claim for refund by relying on the decision in Roplas case when the said decision is no longer a good law as repeatedly declared by this Court. The action of the Assistant Collectors in ignoring the decision of this Court and relying upon Roplas case is extremely disturbing and in case the Assistant Collector indulges in this action hereafter we propose to take very serious action. The Assistant Collectors should not forget that they are exercising quasi-judicial authority and are bound by the decisions of this Court and should not rely upon over-ruled decision for rejecting the claim of the assessee.

Shri Sethna, learned Counsel appearing on behalf of the Department, today filed a return and insisted that this Court should not finally dispose of the petition but only admit the petition and keep it pending probably for more than 12 years. The heavy pendency of this Court indicates that the matters cannot be heard for years together and the anxiety seems to be that the petitioners should be deprived of the refund for over years. We fail to appreciate the anxiety of the Department in this regard. As Shri Sethna insisted upon only admission of the petition and not its final disposal, we are constrained to pass order of only admitting the petition, but we propose to grant interim relief claimed in prayer (b).

Accordingly, we issue rule and direct the respondents to deposit sum of Rs. 3,62,256.51 and Rs. 11,81,247/- with the Prothonotary and Senior Master within one week from today. On such deposit, the petitioners are entitled to withdraw it without furnishing any security.