USHA BELTRON LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The only question that needs adjudication in this case is whether the petitioner is entitled to receive excise duty component as indicated in the price bid made by it, at the rate of 18% or 16%.

(2.) For adjudication of this case, a brief reference to the factual aspect would be. necessary. Petitioner, a public limited company, is engaged in the manufacture of Polyethylene insulated Jelly Filled (PIJF) cables. In response to an advertisement for supply, inter alia, of PIJF cables, petitioner participated in the tender and has been supplying PIJF underground cables to Telecom Centres of Ministry of Telecommunication. The price indicated and accepted as per the general conditions of contract was that the excise duty is to be separately indicated. This is evident from the following clause in the tender document:

(3.) In the aforesaid undisputed background, petitioner's case is that after goods had left its godown/premises for delivery to the respondent's place of delivery, the old rate of 18% was applicable and was liable to be paid by the respondent in terms of price-list. Learned Counsel for the respondent submitted that the title in the goods passed only after delivery of the goods to the respondent and that event having taken place after 28.2.1999, and therefore, reduced rate of 16% was applicable.