1989 (9) TMI 111 - HC - Central Excise

Summary

Issues:
Challenge to order of Assistant Collector of Central Excise, appellate orders of Collector, and revision order by Government of India regarding exemption claim on excise duty for base materials used in manufacturing fertilizers.

Analysis:
The petitioner challenged the order of the Assistant Collector of Central Excise, confirming the show cause notice for payment of excise duty on base materials used in manufacturing fertilizers. The principal issue was whether the petitioner was entitled to claim exemption for duty paid on imported base materials. The petitioner claimed that the base materials were imported by agencies like the Food Corporation of India, who paid countervailing customs duty, and then sold to distributors, from whom the petitioner purchased. However, authorities did not accept the petitioner's claim during the periods covered by the writ petitions.

The Assistant Collector was aware of the relevant provisions and discussed the evidence presented by the petitioner. He noted that the petitioner failed to provide sufficient evidence linking the base materials used with the imports made by the agencies. This finding was upheld in appeal and revision by the Government of India. The court stated that it could not reevaluate the evidence presented or decide on its probative value as it was not within its jurisdiction to act as an appellate court.

In another writ petition, the petitioner tried to rely on the fact that certain demand notices were not proceeded with, indicating that base fertilizers were obtained from dealers dealing in duty-paid materials. However, the court rejected the argument that a different standard of proof was applied by the authorities. It emphasized that the issue of whether duty was paid on the base materials was a matter of fact, not law. The court concluded that none of the challenged orders warranted interference in writ jurisdiction and discharged the rules without costs.