ENGLISH ELECTRIC COMPANY OF INDIA LIMITED Vs. ASSISTANT COLLECTOR OF CENTRAL EXCISE, MADRAS IV DIVISION

JUDGEMENT

(1.) The writ petition is taken up with the consent of parties.

(2.) The petitioner is a public limited company having a factory at Pallavaram, Madras. It is an assessee on the files of the first respondent. It manufactures relays, switches, control panels, CFS Units, OHBB, etc. For some of its products, it is filing Part I price list under Rule 173-C of the Central Excise Rules adopting valuation in terms of Section 4(1)(a) of the Central Excise Act. For other goods, the petitioner has been invoking the exemption under Rule 173-C(11) of the Rules. Prior to the passing of Central Excise Tariff Act, 1985, those goods were classified as TI 68 goods. From 1975 to 1986, the respondents were permitting the petitioner to clear such goods on payment of excise duty based on invoice value in terms of notification 120/75 dated 30.4.1975. After the new Act came into force, the petitioner applied to the Department on 20.3.1986 and 9.4.1986 seeking permission to clear goods on payment of duty on invoice value in terms of Rule 173-C(11). The same was granted by order dated 19.5.1986 by the first respondent for a period of three months giving liberty to apply for extension. Since then the permission was being extended periodically till 31.12.1991. Thus, the petitioner was enjoying the benefit from July 1986 to December 1991.

(3.) The Collectorate of Central Excise issued Trade Notice No. 125/91 dated 15.11.1991 to the effect that from 1.1.1992 onwards manufacturers in non-SSI units shall file price lists under Rule 173-C. A specific procedure was prescribed for those who wished to avail the facility of adopting invoice price under Rule 173-C(11). The conditions to be fulfilled for the eligibility were also set out. It was made clear that the guidelines prescribed should be strictly followed while submitting applications for availing such facility. It was pointed out in the notification that the power to grant the concession under Rule 173-C(11) vested only with the second respondent and not the first respondent.