SHREE VINDHYA PAPER MILLS Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners herein are claiming refund of amount of cess paid under protest, in spite of having recovered the same from their customers, contending that the respondents have no authority to retain the said amount as such denial of refund of Rs. 10,19,246/ - paid under protest as cess during the period from 1st March, 1981 to 6th June, 1990 under the Paper and Paperboard Cess Rules, 1981 ("Cess Rules, 1981" for short) framed under Industries (Development and Regulation) Act, 1951 ("IDR Act, 1951" for short) is bad and illegal. The petitioners, consequently, have prayed for quashing and setting aside the orders dated 13th December, 1989 and 25th June, 1990 passed by the Assistant Collector of Central Excise & Customs, Nasik, respondent No. 3 herein; and also prayed for direction to refund amount of cess with interest.

(2.) THE petitioners have also challenged the constitutional validity of Section 11B brought on the statute by way of the Central Excise and Customs (Amendment) Act, 1991 ("Amendment Act of 1991" for short). However, now challenge in this behalf does not survive since the Apex Court in the case of Mafatlal Industries Ltd. v. : 1997(89)ELT247(SC) has upheld the validity of Section 11B of the Central Excise Act, 1944.

(3.) THE Petitioner No. 1 Shree Vindhya Paper Mills Limited, inter alia, manufactures quoted paperboards. The quoted paperboards are manufactured out of purchased cess -paid base paper. According to the petitioners, the respondents compelled them to pay cess on the quoted paperboards manufactured by them under the Cess Rules, 1981. Accordingly, the cess was paid by them under protest during the period from 1981 to 1990 since they were of the view that no cess is payable on the products manufactured out of cess -paid base paper. Petitioners, from time to time, filed refund applications to claim refund of cess paid by them under protest under the Cess Rules, 1981.