HARDILLIA CHEMICALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE relevant submissions of the learned Counsel for the Petitioners are as under : The Petitioner company is engaged in the manufacture of petrochemicals. For the purpose of manufacturing petrochemicals the petitioner company uses 3 Ethyl Hexanol (EH) as a raw material/input. EH is a non-potable industrial alcohol. During the period 13-8-1979 to 1-3- 1984 the petitioner imported various quantities of EH paying additional duties of customs (under Section 3 of Customs Tariff Act, 1975) amounting to Rs. 57,80,183/- equivalent to the excise duty payable under T. I. 68 of the Central Excise Tariff.

(2.) ON 18-12-1986 this Hon'ble Court by a judgment and order in the matter of Raman K. Bhandari - 1987 (27) E. L. T. 617 (Bom.) (This judgment was ultimately upheld by a Division Bench of this Hon'ble High court in 1990 (29) ECC 152 (Bom.) held that non-potable industrial alcohol was not liable to pay additional duty of customs. On the rendering of the aforesaid decision the petitioner realised its mistake and filed refund applications on 3-3-1987 and 24-3-1987 with the Assistant Collector of [central] Excise.

(3.) THERE was no response to the refund applications from the department. The petitioner was constrained to file this petition.