TAN INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The prayer in the writ petition is for a mandamus to direct the respondent, namely, the Union of India, to forbear from collecting excise duty in excess of 50% of the normal duty payable under Tariff Item No. 23 of the Central Excise and Salt Act, 1944 for a period of 5 years from the date of commencement of production of cement by the petitioner-company.

(2.) Mr. K. Doraisami, learned Senior Counsel, appearing for the petitioner relies on a Press Note issued by the Department of Industrial Development, Ministry of Industry, Government of India dated 4-1-1979 in which the Government stated that after studying the report of the two Working Groups set up by the Government, the Government had decided to encourage the mini cement plants and for that purpose "the Mini Cement Plants will be allowed a rebate in the payment of excise duty upto 50% for a period of five years" and contends that in keeping with the above Press Note, the petitioner-company a Mini Cement Plant which commenced production in September, 1985 should have been allowed concession in the payment of excise duty upto 50% for a period of 5 years from the date of commencement of production. On the contrary, full excise duty was collected from the petitioner which according to the petitioner is illegal. He would also rely on the averments in paragraph 9 of the affidavit wherein the petitioner has stated that since the Press Note did not specify as to from what date the concession for a period of 5 years would be made available, an un-starred question was raised in the Lok Sabha on 23-12-1981 to which the Hon'ble Minister for Industry specifically stated on the floor of the House that the period of 5 years during which the concession in excise duty would be available is from the date of commencement of production and not from the date of the Press Note, namely 4-1-1979.

(3.) The petitioner states that acting upon the above statement made by the Hon'ble Minister on the floor of the House it has spent time and energy as well as huge amount of money in establishing a Mini Cement Plant : but, unfortunately, the Government had gone back upon their commitment contained in the Press Note and declined to grant relief of excise duty to the petitioner. The petitioner relies on the well-known theory of 'promissory estoppel' in support of its case.