SUPRA DYE CHEM Vs. UNION OF INDIA

JUDGEMENT

(1.) The Petitioners have filed this Writ Petition praying for a Writ of Certiorari under Article 226 of the Constitution of India calling for the papers in respect of the Petitioners' application for a licence addressed to Respondent No. 4 and, after going through the legality thereof, to pass appropriate orders for the issuance of the said licence. The Petitioners secondly pray for an Order directing the Respondents to issue the licence to the Petitioners. Thirdly the Petitioners pray that the Petitioners may be deemed to have been granted the licence by the 4th Respondent, in view of the fact that the application for such a licence had been made as far back as in 1982 and the Respondents had acknowledged receipt of the Petitioners' application. By an amended prayer, the Petitioners have prayed for the refund of an amount of Rs. 9,93,637.39 together with interest from the date of payment made by the Petitioners till the date of refund by the Respondents.

(2.) By an Agreement dated 1-3-1982 between M/s. Jalan Dyeing and Bleaching Mills and M/s. Supra Dye Chem of which one P. Murarka was the sole proprietor, the plant and machinery for manufacturing textile binders was leased by M/s. Jalan Dyeing and Bleaching Mills to M/s. Supra Dye Chem. By another Agreement of Assignment dated 24-7-1986, P. Murarka, the sole proprietor of M/s. Supra Dye Chem, transferred his right, title and interest under the Agreement dated 1-3-1982 to Bharat Dharamchand Jalan, the present Petitioner. M/s. Supra Dye Chem applied for a licence from the Central Excise Authorities on 15-6-1982.

(3.) The Petitioners filed a declaration giving the Tariff Item manufactured by them as Tariff Item No. 15AI(ii). The Petitioners relied on Notification No. 83/83-CE dated 1-3-1983 under which, in the case of first clearance, specified goods upto an aggregate value not exceeding Rs. 5,00,000/- were exempt from the whole of the duty of excise leviable under Section 3 of the Central Excises and Salt Act, 1944. According to the Petitioners, since their production was within the value of Rs. 5,00,000/-, they were exempt from payment of excise duty on textile binders. Although the Petitioners' predecessors had applied for a licence under Treasury Challan No. 6013 dated 15-6- 1982 and had complied with all the requirements and necessary formalities, no licence was issued by the Respondents to the Petitioners.