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2018 Supreme(Online)(KER) 61010
HIGH COURT OF KERALA
DAMA SESHADRI NAIDU, J
PERFECT ALLOYS – Appellant
Versus
THE ASSISTANT COMMISSIONER OF CENTRAL TAX AND CENTRAL EXCISE – Respondent
WP(C)/32867/2018
SRI.N.JAMES KOSHY, SC SRI. SREELAL N. WARRIER
The court recognizes the necessity to adapt repayment terms under Central Excise laws during exceptional circumstances like natural disasters.
Headnote:
Excise - Central Excise Act - Circular No.996/3/2015-CX - The court directed that the petitioner be allowed to request a rescheduling of repayment in light of the recent floods and the relevant circular, thereby ensuring relief for the petitioner.
Fact of the Case:
The petitioner, having secured an earlier installment facility for Central Excise arrears, sought an extension due to devastating floods affecting their business. They argued for a rescheduling of payments based on the resulting financial difficulties.
Finding of the Court:
The court concluded that the petitioner was permitted to approach the relevant authorities for a repayment rescheduling based on Circular No.996/3/2015-CX. The court also suspended the previous order until consideration of this request.
Issues: Whether the petitioner can obtain an extension of the installment repayment facility due to financial distress caused by natural calamity.
Ratio Decidendi: The court emphasized the importance of judicial discretion in ensuring fair treatment under exceptional circumstances, particularly in light of governmental directives for repayment modifications.
Final Decision: The writ petition is allowed in part, enabling the petitioner to request a rescheduling of repayments based on circular guidelines.
JUDGMENT
The petitioner, an assessee, owed Central Excise arrears. Earlier, through Ext.P2 judgment, he secured an instalment facility. After substantially complying with the judgment, the petitioner's business was ravaged in the recent floods, as the industry is located at the epicentre of the floods : Pathanamthitta District. Now, once again the petitioner has approached this Court to have the facility of instalments extended because of that natural calamity.
2. In response to the submissions made by the petitioner's counsel, the learned Senior Standing Counsel for the respondents has fairly submitted that the Department has already issued Circular No.996/3/2015-CX dated 28.02.2015. According to him, this Court may dispose of the writ petition directing the first respondent to consider the petitioner's request in the light of that circular.
I, therefore, hold that the petitioner can approach the Authorities with a request to have the repayment rescheduled. Then, the Authority will consider the petitioner's request in the light of the circular. Until this process is completed, the Ext.P7 order stands suspended.
At this juncture, the petitioner's counsel submits that the Department has so far not accounted for about Rs.30,00,000/- the petitioner has paid. The learned Senior Standing counsel assures the Court that the Department will look into that aspect also.
sd/-
DAMA SESHADRI NAIDU, JUDGE
APPENDIX PETITIONER'S/S EXHIBITS:
EXHIBIT P1 TRUE COPY OF THE JUDGMENT IN W.P(C) NO.
5164/2016 DATED 23-02-2016 OF THE HON'BLE HIGH COURT OF KERALA, ERNAKULAM EXHIBIT P2 TRUE COPY OF THE JUDGMENT W.P(C) NO.
8532/2017 DATED 14-03-2017 OF THE HON'BLE HIGH COURT OF KERALA.
EXHIBIT P3 TRUE COPY OF THE 31 e-RECEIPTS FOR CENTRAL EXCISE TAX PAYMENT FROM 21-04- 2017 TO 11-06-2018 FOR A TOTAL SUM OF RS.30,26,330/-
EXHIBIT P4 TRUE COPY OF THE SUMMARY STATEMENT SHOWING THE CHALLAN NUMBER, DATE OF PAYMENT AND AMOUNT OF PAYMENT EXHIBIT P5 TRUE COPY OF THE PHOTOGRAPH SHOWING THE WATER LEVEL IN FRONT OF THE FACTORY BLOCKING TOTALLY THE TRANSPORTATION TO AND FROM THE FACTORY EXHIBIT P6 TRUE COPY OF THE REVENUE RECOVERY NOTICE NO. KFC/ALP/010200210,90,91/208/2018 DATED 17-07-2018 ISSUED BY THE KERALA FINANCIAL CORPORATION, ALAPPUZHA TO THE PETITIONER EXHIBIT P7 TRUE COPY OF NOTICE C.NO.
IV/16/06/2017- ARREARS(CE)/2348 DATED 26-09-2018 ISSUED TO THE 3RD RESPONDENT BANK BY THE 1ST RESPONDENT EXHIBIT P8 TRUE COPY OF THE REPRESENTATION DATED
29-09-2018 SUBMITTED BY THE PETITIONER BEFORE THE 1ST RESPONDENT RESPONDENTS EXHIBITS NIL TRUE COPY P.A.TO JUDGE
