NUCHEM PLASTICS LIMITED Vs. ASSISTANT COLLECTOR CENTRAL EXCISE

JUDGEMENT

(1.) In this writ petition, the petitioner herein, a manufacturer of U.F. and M.F. Moulding Powder and Prescol Resin powder, has inter alia prayed for issuance of a writ in the nature of mandamus directing the respondents to approve as proper value to be charged with excise duty the international prices fixed under law by the Government for supplies made by the petitioner to the holders of release orders issued by the Govt.

(2.) The petitioner is registered and incorporated under the Companies Act. The product of the petitioner is chargeable with excise duty which used to determine the value of its product from time to time in terms of the provisions of the Central Excise and Salt Act, 1944 ( hereinafter referred to as the Act, for short) and the rules framed thereunder.

(3.) According to the petitioner, in terms of the scheme, the petitioner was obliged to supply and in fact had been supplying goods to the holders of the release orders issued by the Chief Controller of Exports and Imports Bombay at the international price fixed by the Chief Controller of Imports and Exports. The international prices were fixed by the Government and release orders are issued by it. As such, according to the petitioner, it had no discretion in the matter. The question which arose for consideration was as to whether the excise duty shall be payable on ordinary price for sale or at the international price fixed by the Central Govt. It is not in dispute that international price for the goods was fixed at Rs. 6000/- per metric tonne.