2016 (5) TMI 1468 - HC - Central Excise

Levy of Central Excise Duty on coal - Validity of Notification dated 21-10-2015 - Held that - The impugned notification dated 21-10-2015 issued by the Mahanadi Coalfields Limited under Annexure-1 appears to be in violation of the same - application allowed.

Summary

Issues:
Levy of Central Excise Duty on coal.

Analysis:

The judgment by the High Court of Orissa pertains to the issue of the levy of Central Excise Duty on coal. The court refers to a previous order dated 31-7-2015 in W.P. (C) No. 6034 of 2013 where it was held that excise duty on coal sales should be levied as directed by the Central Excise Authority. The court quashed a notice issued by Mahanadi Coalfields Limited on 7-3-2013 and granted liberty to issue a new notice in accordance with the direction given. The court found that an impugned notification dated 21-10-2015 issued by the same entity was in violation of the earlier direction. Consequently, the court allowed the writ application and quashed the notification dated 21-10-2015. The Mahanadi Coalfields Limited was directed to adhere to the earlier court order and refrain from issuing notices that do not comply with the said direction. An urgent certified copy of the order was to be provided upon application.

Additionally, a miscellaneous case, No. 5039 of 2016, was disposed of in view of the order passed in W.P. (C) No. 5485 of 2016 on the same day. This indicates that the court's decision in the primary case had a consequential effect on the miscellaneous case, leading to its disposal. The judgment reflects a clear stance by the court in ensuring compliance with its earlier directives regarding the levy of Central Excise Duty on coal, emphasizing the importance of following court orders and maintaining consistency in administrative actions.