SAHEB SINGH Vs. UNION OF INDIA UOI

JUDGEMENT

(1.) This writ petition is filed by several petitioners seeking a writ in the nature of mandamus against the respondents directing them not to demand or realise any amount from the petitioners on account of excise duty on the stocks of tobacco in respect of the crop year 1977-78, pursuant to the impugned citation.

(2.) The case of the petitioners is that price offered for the crop was too low for the relevant year and, therefore, they requested the respondents to permit the former to use the tobacco as manure for agriculture purposes. When nothing was heard from the respondents, it is averred that the crop was harvested and used as manure for agricultural purposes.

(3.) Reliance is placed on Instruction 31(f) of the Manual of Departmental Instructions on Tobacco Excise Duty, which states that irrespective of whether a demand for duty has been issued or not (or whether or not a consignment has outlived the maximum period of shortage under Rule 27 or 145) the licensee has the statutory right to claim assessment under Item 4-1(7) of the First Schedule to the Central Excises and Salt Act, 1944 (A copy has been filed as Annexure A-1), Item 4-1(7) in the schedule shows that if tobacco is used for agricultural purpose, then duty will be nil.