DELTON CABLES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner has filed the present petition under Articles 226 of the Constitution of India seeking directions to the respondents that the respondent No.4, Policy Relaxation Committee (PRC) may pass an appropriate order to refund the Terminal Excise Duty (TED) amounting to Rs.42,50,643/- (Rupees Forty two lakhs fifty thousand six hundred forty three) as per the provisions of the Foreign Trade Policy (FTP) along with interest @ 18% per annum. The petitioner also seeks directions to the PRC, respondent No.4 to reconsider the application for sanction of terminal excise duty and give personal hearing to the petitioner. The petitioner also seeks quashing of order dated 12.02.2013 issued by respondent No.4 and policy circular dated 15.03.2013 issued by respondent No.2 and letter dated 07.07.2013 issued by respondent No.4.

(2.) In a nut shell the facts of the case as set out in the petition are that the petitioner is a public limited company registered under the Companies Act, 1956, which is pioneered in manufacture of PVC wires and cables. The petitioner company is also engaged in, inter alia, developing cable technology, power distribution, applications and power management solutions used in refinery, oil and gas processing sites, chemical and fertilizer sites, power generation, transportation and urban development applications. On 20.12.2004, a contract was executed between West Bengal Power Development Corporation Ltd. (Project Authority) and Bharat Heavy Electricals Ltd. (BHEL) (Project Authority) for supply of equipments and materials. A project authority certificate was issued by the West Bengal Power Development Corporation Ltd. (Project Authority). On 25th April, 2007 in an extension to the said contract, a certificate dated 05.04.2005 was issued by the project authority to the main contractor.

(3.) In furtherance of the aforesaid contract, numerous purchase orders were received by the petitioner from the main contractor for the said project. Accordingly, the petitioner company made supplies and payments were received. During the delivery of said supplies, the petitioner company erroneously paid excise duty to the tune of Rs.42,50,643/- (Rupees Forty two lakhs fifty thousand six hundred forty three). The petitioner moved an application to respondent No.3 for refund of Terminal Excise Duty (TED), which was erroneously paid to the excise department. The respondent No.3, vide letter dated 25.05.2011 informed the petitioner that the petitioner company is not eligible for refund of TED since its name is not mentioned in the contract dated 20.12.2004. Aggrieved by the said letter, the petitioner made representation dated 04.08.2011 and 19.09.2011. The petitioner also submitted the project authorty's letter dated 21.07.2011 wherein it was stated that M/s. Delton Cables Ltd. was duly appointed as SubContractor by M/s. BHEL, the main contractor for the said project.