HERBERTSONS Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) CIVIL Writ Petition No. 2683/98 was filed by M/s Herbertsons Ltd. to quash the notice as also the impugned orders Anx. 1 dated 16. 8. 97 passed by the Commissioner, Excise Department, Udaipur and Anx. 2 dated 29. 7. 98 passed by the Rajasthan Taxation Tribunal, Jodhpur Bench and to declare that no interest is leviable on the due enhanced bottling fees since the payability of the dues was arrested during the period in which the stay order passed by this Court was in vogue. Therefore, the respondents be directed to make refund of the Rs. 33,91,500/- which have been deposited by the petitioner against the interest, with interest at the rate of 24% per annum.

(2.) WRIT Petition No. 2684/98 was filed by M/s. Udaipur Distillery Company Ltd. to quash the impugned orders Annex. 1, 2 and 3 and to declare that no interest is leviable on the due enhanced bottling fees on the petitioner company, since the payability of the due enhanced bottling fees was arrested during the period in which the stay order was in vogue and granted by the High Court and to refund a sum of Rs. 83, 00, 000/- which have been deposited by the petitioner against interest with interest at 24% per annum.

(3.) IT is relevant to notice the observations made by the Division Bench:- "1. . . . . . . The controversy involved in these appeals is that the appellants questioned the imposition of excise duty on them. The imposition of excise duty was questioned by the appellants before this Court unsuccessfully and liability to pay the excise duty was maintained even upto Supreme Court. Since the appellants were litigating and had stay orders operating in their favour at some intervals while they were litigating the imposition of the excise duty they ignored the liability to pay tax over the same. IT is admitted fact that appellants have paid the amount as far as the excise duty is concerned. 2. Since the law provided for imposition of interest on delayed payment of the excise duty, the Excise Commissioner issued an order dated 16. 12. 1995, whereby interest for about 10 years, that is from 1984 to 1995, was demanded from the appellants. This amount was disputed by the appellants and in the meantime they sat with the respondents and arrived at an amount which, according to them, was the correct calculation of interest. The Department earlier demanded a sum of Rs. 1. 85 crores as interest which was later on corrected to Rs. 1. 45 crores only. This amount was calculated against the appellants in terms of Sec. 30-A. 3. With the payment of excise duty the challenge by the appellants against imposition of excise duty came to an end. As regards imposition of interest, the appellants got the same corrected by sitting with the respondents and no steps were taken by the appellants to file any appeal against the order of imposition of interest to the tune of Rs. 1. 45 crores on the amount of excise duty. However, the appellants preferred an application u/s. 30-AA of the Rajasthan Excise Act, 1950 (hereinafter referred to as the Act') for waver of the interest because they were ready and willing to co-operate with the Department as regard realisation of interest. The respondent- Commissioner by order dated 31. 08. 1996 rejected the application of the appellant-petitioners. Against the order of the Commissioner whereby he refused to waive the amount of interest imposed or to reduce the same, petitioners preferred the writ petitions mentioned above and impugned this impugned order Annex. 1 to the writ petitions. "