GODFREY PHILLIPS INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners manufacture cigarettes. Until 30th November 1982 a Notification (No. 30/79-CE) prescribed a concessional rate of duty on cigarettes. By a Notification dated 30th november 1982 the earlier Notification was rescinded so that excise duty on cigarettes became payable at the tariff rate. On 3rd December 1982 the Superintendent, Central Excise, informed the petitioners of the above and requested them to submit a new price list failing approval of which clearances would not be allowed. On 6th December, 1982 the petitioners informed the assistant Collector that they required some time to consider the text of the latter notification. On 14th December 1982 the petitioners wrote to the Assistant Collector that the wholesale prices and assessable values of all their brands of cigarettes had been retained and the assessable values approved earlier would hold goods; only the amount of duty payable would be affected. A price list upon that basis was forwarded. On 15the December 1982 this price list was approved, provisionally because of an order of this court in a pending writ petition relating to post-manufacturing expenses.

(2.) ON 21st December 1982 the petitioners were not permitted clearance of their cigarettes. They approached the Collector and on 23rd December 1982 the Collector informed them in writing of the reason. He said that the assessable values of the petitioners' cigarettes had not been changed in spite of the fact that a larger amount from the cum-duty price went towards the payment of excise duty. It, therefore, followed that the net amount received by the petitioners from the sale of cigarettes, after payment of excise duty, was substantially reduced. The petitioners were requested to submit a revised price list declaring revised assessable values for the cigarettes manufactured by them. In the meantime "the clearances of cigarettes of various brands can be permitted after assessing them to duty on the assessable values, which were the net sum realised by you after payment at concessional rate of duty in the past, on provisional basis, as such values represented the manufacturing cost and manufacturing profit. "

(3.) THE petitioners thereupon approached the court and clearances have been permitted on the strength of an interim order.