1. Recovery of shortfall in excise dues from contractors. (Para 1 )
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1994 Supreme(SC) 901
SUPREME COURT OF INDIA
R.M. SAHAI AND N.P. SINGH, JJ.
State of Punjab and others, Appellants
Versus
Hem Raj, Respondent.
Civil Appeals Nos. 936-942 with 943 to 982 of 1979
Decided on 13-9-1994.
Important Points
The Supreme Court held that shortfall in excise dues can be recovered from contractors, following its decision in State of Punjab v. Mulkh Raj & Co. (1977), which reversed the Punjab & Haryana High Court's Full Bench ruling that had previously favored the contractors.
Subject
Taxation Law - Excise Duty
Act Referred
Headnote
SHORT FALL IN EXCISE DUES WHETHER CAN BE RECOVERED FROM CONTRACTOR.
Legal Category Hierarchy
Table of Contents
2. Whether shortfall in excise dues could be recovered from the contractor. (Para 1 )
3. High Court orders quashing demand notices were based on a Full Bench decision subsequently reversed by the Supreme Court. (Para 1 )
4. High Court orders based on a Full Bench decision reversed by the Supreme Court cannot be maintained. (Para 1 )
5. Appeals allowed, High Court order set aside, and writ petitions dismissed. (Para 2 )
6. What is the effect on High Court orders based on a Full Bench decision if that decision is subsequently reversed by the Supreme Court?
Such orders cannot be maintained because the legal basis upon which the High Court quashed the demand notices was overturned by the Supreme Court. (Para 1 )
JUDGMENT
In Civil Appeals Nos. 936, 938-39, 941, 943, 944, 946, 948, 950-51, 953, 960, 962-69, 971, 974, 976 and 978 the controversy raised stands concluded by the decision of this Court in State of Punjab v. Mulkh Raj & Co., (1977) 3 SCC 582. The dispute was whether shortfall in the excise dues could be recovered from the contractor. A Full Bench of the Punjab & Haryana High Court in Mulkh Raj Krishan Kumar v. State of Punjab, (1972) 74 Pun LR 698, held in favour of the contractors and quashed the demand notice. Following the Full Bench decision, the High Court quashed notice in these petitions as well. Since the Full Bench decision has been reversed by this Court, the order of the High Court cannot be maintained.
2. The appeals are allowed. The order of the High Court is set aside. The writ petition of the respondent in the High Court shall stand dismissed. But the parties shall bear their own costs.
Appeals allowed.
For Citation: AIR 1995 SC 604
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