PABHOJAN TEA ESTATE Vs. UNION OF INDIA

JUDGEMENT

(1.) By filing this writ petition under Article 226/227 of the Constitution of India, the assessee seeks to challenge the demand dt 27.4.2005 (Annexure 4) for Rs. 6,96,000, raised on it by Superintendent of Central Excise, Golaghat ( respondent no 5 ) towards payment of "interest" on account of delayed payment made by the writ petitioner of (1) additional duty of excise payable under the Finance Act 2003,( 2 ) cess payable under the Tea Act and ( 3 ) Education cess payable under the Finance Act on the "Tea" produced and sold by them during the period ( April 2003 to December 2005.)

(2.) The fact of the case lies in a narrow compass .Indeed, issue involved in the writ petition is purely legal. However, in order to appreciate the issue, it is necessary to set out facts with relevant legal provisions.

(3.) The petitioner is a proprietorial concern. It is engaged in the business of manufacture and sale of "Tea". It has a factory located at Barapathar in District Golaghat. The "Tea" is an excisable commodity under the provisions of Central Excise Act. By Finance Act 2003, the Parliament imposed an additional excise duty payable as a surcharge on" Tea and Tea waste" at the rate of "Rs. one per Kg". Section 157 ( 1 ) of the Finance Act provided that there shall be levied and collected for the purpose of the Union , by surcharge, an "additional duty of excise" at the rate specified in the schedule.