PREMIER AUTOMOBILES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) This is an appeal against the judgment dated February 25, 1981 delivered by Mr. Justice Lentin dismissing the petition filed by the appellants under Article 226 of the Constitution of India to challenge the orders passed by the Assistant Superintendent of Central Excise between March 9, 1973 and September 21, 1973 confirming the demand for payment of additional excise duty, and confirmation of those orders by the appellate and revisional authorities. The facts giving rise to filing of the petition are not in dispute and are required to be briefly stated to appreciate the grievance made by the appellants while challenging the order of the learned single Judge.

(2.) The appellant Company manufactures and sales Fiat cars and prior to September 4, 1969 the cars were sold at the price of Rs. 12,660/- fixed by the Government by informal price control. On September 4, 1969 the Company issued a price bulletin raising the price of cars to Rs. 14,862/- with effect from September 8, 1969. On September 21, 1969. The Government of India, Ministry of Industrial Development, Internal Trade and Company Affairs published Price Control Order in exercise of powers conferred by Section 18-G of the Industrial (Development and Regulation) Act, 1951. The Order was called the Motor Cars (Distribution and Sales) Control (Amendment) Order, 1969. The Order, inter alia, prescribes that no manufacturer or dealer shall after the commencement of the order, sell or offer to sell or otherwise transfer or dispose of motor cars for a price exceeding the price specified in Schedule I to the Order. In respect of Fiat cars manufactured by the appellants, the Schedule prescribes that the price to be charged was Rs. 14,325/- per car. The Explanation to the Schedule sets out that the price specified in ex-factory price inclusive of dealer's commission and does not include excise duty, Central Sales tax and local taxes, if any, and transportation charges. The result of insurance of the Price Order was that the retail price of the Fiat car was fixed at Rs. 14,325/-, including the dealer's margin for Rs. 891/, and therefore, the net dealer's price was fixed at Rs. 13,434/- per car.

(3.) On September 22, 1969, the appellants preferred Writ Petition No. 327 of 1969 in the Supreme Court under Article 32 of the Constitution challenging the validity and legality of the Price Control Order. The petition was duly admitted, but the Supreme Court declined to grant any interim relief to the appellants. The appellants thereupon informed their dealers on September 26, 1969 that in the invoice an endorsement would be incorporated that the price in the bill was provisional and would be subject to the ultimate decision of the Supreme Court. The endorsement reads as follows :