J.B. KHARWAR SONS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners in these petitions are engaged in the business of processing cotton and man -made fabrics. They have filed these petitions for appropriate write, order or direction directing the excise authorities to reassess the assessable value of the processed fabrics and to grant refund with interest at the rate of 12% per annum on the excise duty collected by them.

(2.) NOW it is settled by the decision of the Supreme Court that while arriving at assessable value of the processed fabrics, trader's profit is required to be excluded. It is the petitioner's case and not in dispute now that the assessable value has been determined by the excise authorities after including the trader's profit. It would, therefore, be necessary now to direct the excise authorities to reassess the value of the processed fabrics in light of the judgment of the Supreme Court in Ujagar Prints and Ors. v. Union of India 1988 (38) E.L.T. 535 read with 1989 (39) E.L.T. 493 (S.C.), and refund that amount which is found to be in excess of the duty legally payable.

(3.) IN view of the fact that the matters are finally disposed of, it will be open to the Registrar to encash the bank guarantees given to him to the extent of 75% and make payment to the department. As the bank guarantees given by the petitioners in Special Civil Applications Nos. 1284, 1287 and 703 of 1990 have lapsed, they are directed to renew the bank guarantees given by them within a period of one month from today.