VENUS PLYWOODS PVT. LTD. Vs. Y.D. BANGA

JUDGEMENT

(1.) THE Petitioner's Company is registered under the Companies Act as Private Limited Company. The business of the Company is of manufacturing of plywood and other articles of wood falling under Chapter 44 of the Central Excise Tariff Act. The factory is situated at Pathankot Road, Village Raowali, Jalandhar City. Excise duty was charged from the Company. However, the Customs, Excise & Gold (Control) Appellate Tribunal, on January 22, 1990, ordered on the appeal filed by the Company that the goods were covered under the classification under Tariff sub -heading 4410 - -90 and thus the Company was entitled to the consequential relief. Annexure P -2 is the copy of the order of the Tribunal. The Company preferred an application on April 18, 1990 for refund of the Excise Duty illegally collected. Two Amounts were claimed by refund Ks. 13, 36, 329.74 and Rs. 56,000, which covered the period from February 6, 1987 to March 17, 1990. Exhibit P -3 is the copy of the refund application. The Assistant Collector, ultimately ordered refund of Ks. 56,000, but no action was taken for refund of Rs. 13,36,329.74 as stated above. This led the Company to file Civil Writ Petition No. 10037 of 1990 in this Court for a direction to the Respondent to implement the order of the Tribunal by granting refund of the aforesaid amount.

(2.) THE Division Bench on October 5, 1990 passed the final order on the writ petition directing the Respondent to implement the order of the Tribunal aforesaid with a period of two months provided there was no stay order against the implementation of the same from the Supreme Court. It was further ordered that as a result of the implementation, if any amount was found due, the same should be released forthwith.

(3.) ON a notice to show -cause, why proceedings under the Contempt of Courts Act be not taken against the Respondent, reply has been filed, inter alia, alleging that the notice aforesaid was issued by the Respondent in response to instructions issued by the department by Telex (Copy Annexure R -l), withdrawing previous instructions on the subject and directing that refund claim should not be sanctioned to manufacturers and importers on the ground of unjust enrichment.