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Our Legal Correspondent

Chennai, Dec. 8 The Central Excise authorities have been directed by the Madras High Court to consider the plea of GK Steels (Coimbatore) Ltd for granting concession under the Kar Vivad Samadhan Scheme, 1998, introduced by the Finance Act 21 of 1998.

Mr Justice K. Chandru, while allowing a writ petition from the company, manufacturer of hot re-rolled products, ruled that since the authorities (Commissioner of Central Excise, Coimbatore) had issued notice to them only under Section 95(ii)(c) of the Finance Act, 1998, calling upon them to pay a differential duty of Rs 29.01 lakh, the impugned order of March 5, 1998, of the respondent (Commissioner of Central Excise) was erroneous.

The authority considered the case of the petitioner only under Section 95(ii)(c) and did not advert to the other sub-clause, [(ii)(b)], and hence the notice demanding certain amount including threat of penalty would be squarely not legal. Section 95(ii)(b) should be pressed into service in this matter. The case of the petitioner merited acceptance, the Judge held.

He accepted the contention of the petitioner that taking advantage of the concession granted by the Central Government, they filed a declaration under Form 1B before the authority for the purpose of availing themselves of the benefit under the Kar Vivad Samadhan Scheme. The respondent submitted that the petitioner was not eligible for availing themselves of the scheme as there was no dispute before any court, appellate forum or authority as required under Section 95(ii)(c).

The writ petition stood allowed. The respondent was directed to consider the declaration made by the petitioner under the Scheme, within eight weeks.

More Stories on : Courts/Legal Issues | Excise and Customs | Tamil Nadu

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