1. Dispute regarding the determination of normal price for excisable goods and the relevance of regional sales office price lists during assessment. (Para 2 )
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1997 Supreme(SC) 1447
1997(9) Supreme 317
SUPREME COURT OF INDIA
Suhas C. Sen & M. Jagannadha Rao, JJ.
Union of India & Ors. -Appellants
versus
Tata Engineering & Locomotive Co. Ltd. etc. -Respondents
Civil Appeal No. 7645 of 1997
(Arising out of SLP (C) No. 1094 of 1989)
Decided on 10-11-1997
Counsel for the Parties :
For the Appellants, N.K. Bajpai, V.K. Verma, Advocates.
For the Respondents, Soli J. Sorabjee, Sr. Advocate, Ravinder Narain, Sridharan, Ms. Amrita Mitra, Amit Bansal, Ms. Juhi Singh, Advocates for M/s. J.B.D. & Co., Advocates.
Important Points
IMPORTANT POINT
High Court in exercise of its jurisdiction can not give guidance to Assistant Collector about the manner and mode in which the assessment should be made.
High Court in exercise of its jurisdiction can not give guidance to Assistant Collector about the manner and mode in which the assessment should be made.
Subject
Taxation - Excise Duty
Act Referred
Headnote
EXCISE DUTY-Assessment-Court should not try to control the mode and manner in which assessment should be made-High Court can not give guidance to Assistant Collector about manner and mode in which assessment should be made.
Held : In our view, this writ petition should not have been entertained by the High Court at all. The Assistant Collector is entitled to complete the assessment as he thinks fit in exercise of his judgment and according to his understanding of the law and facts. For this purpose, he can call for and examine whatever documents he considers relevant. If the Assistant Collector fails to follow any judgment of the High Court or this Court, the assessee had adequate statutory remedies by way of an appeal and revision against the assessment order. The Court should not try to control the mode and manner in which an assessment should be made. If the Assistant Collector is of the view that enquiries are necessary to be made as to the price at which trucks were sold at the Regional Sales Offices, the Court cannot stop him from making such enquiries. (Para 4)
Legal Category Hierarchy
Table of Contents
2. Whether the assessing officer is entitled to examine regional sales office price lists or must rely on factory gate prices for valuation. (Para 3 )
3. The assessing officer possesses the discretion to determine the mode of assessment and call for any documents deemed relevant for valuation. (Para 4 , 5 )
4. Courts cannot interfere with the mode and manner of assessment or restrict the assessing officer's power to conduct necessary enquiries. (Para 4 , 5 )
5. Can a court restrict the documents an assessing officer calls for during an excise assessment?
No. The assessing officer is entitled to complete the assessment as he thinks fit in exercise of his judgment and can call for and examine whatever documents he considers relevant. (Para 4 )
6. What is the remedy for an assessee if an assessing officer ignores a court judgment during assessment?
The assessee has adequate statutory remedies by way of an appeal and revision against the assessment order. (Para 4 )
7. Can a High Court direct the mode and manner of an assessment through a writ petition?
No. The court should not try to control the mode and manner in which an assessment is made, nor can it give guidance to the assessing officer on such matters. (Para 4 , 5 )
ORDER
Leave granted.
2. Union of India has come up in appeal against the judgment and order of the Division Bench of the Patna High Court directing the Assistant Collector of Central Excise, Jamshedpur, to pass without delay appropriate final order on all the price lists already submitted by the Company. The Court also held that the price at which the Company sold the vehicles at the factory gate at Jamshedpur should be the normal price for the purpose of computation of the value of the excisable goods. The Court also held that the Assistant Collector of Central Excise could only call for relevant documents for the purpose of assessment of the value of the excisable goods. In the facts of this case, price lists of Regional Sales Offices of Tata Engineering & Locomotive Co. (TELCO) could not be said to be relevant for passing final orders on the price lists submitted by the company.
3. The appellant has contended that it was necessary for the Excise Officer to examine the price at the Regional Sales Offices because two types of prices were being charged at the factory gate of the Company at Jamshedpur. It has been contended in reply that the bulk of the sales made by the Company was to the dealers; a small portion of sales was effected to sub-dealers directly for which full particulars were furnished. Moreover, this point was not raised before the High Court when the writ petition was heard.
4. In our view, this writ petition should not have been entertained by the High Court at all. The Assistant Collector is entitled to complete the assessment as he thinks fit in exercise of his judgment and according to his understanding of the law and facts. For this purpose, he can call for and examine whatever documents he considers relevant. If the Assistant Collector fails to follow any judgment of the High Court or this Court, the assessee had adequate statutory remedies by way of an appeal and revision against the assessment order. The Court should not try to control the mode and manner in which an assessment should be made. If the Assistant Collector is of the view that enquiries are necessary to be made as to the price at which trucks were sold at the Regional Sales Offices, the Court cannot stop him from making such enquiries.
5. Mr. Sorabjee, appearing on behalf of the respondents, has complained that the assessments are going on endlessly and without due regard to an earlier judgment of the Patna High Court in respect of an earlier assessment year on the very same issues. Whether the controversy raised in this case is covered by an earlier judgment of the High Court is a matter to be decided by the Assistant Collector. He will have to decide all questions of fact and law. He has to make whatever enquiries he thinks necessary for determination of the value of excisable goods. The High Court in exercise of its jurisdiction cannot give guidance to Assistant Collector about the manner and mode in which the assessment should be made.
We are of the view that the High Court was in error in entertaining this writ petition. Therefore, the appeal is allowed and the judgment of the High Court under appeal is set aside. There will be no order as to costs.
The Assistant Collector is directed to complete the assessment as expeditiously as possible.
Appeal allowed.
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Parallel Citations of other Journals :
Union of India & Ors. v. Tata Engineering & Locomotive Co. Ltd. etc., 1997(9) Supreme 317 : 1997(7) Scale 2 (SC)
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