M/S Ester Industries Ltd. vs Union Of India And Ors. on 2 June, 2016

1. The Petitioner has filed the present petition under Article 226 and

227 of the Constitution of India, inter alia, impugning a letter dated 13th

July, 2000 issued by Superintendent of Central Excise, Khatima, calling

upon the Petitioner to pay back a sum of Rs.1,69,91,809/-, stated to have

been claimed as MODVAT credit under Rule 57A of the Central Excise

Rules, 1944 (hereafter ‘the Rules’), for the period 16th March, 1995 to 12th

May, 2000. The Petitioner also challenges Section 112 of the Finance Act,

W.P.(C) 3889/2000 Page 1 of 21
2000 as being ultra vires the Constitution of India.

2. The Petitioner is a public limited company engaged in the

manufacture and sale of Polyester Chips, Polyester Films, Polyester

Filament Yarn, etc. The dispute in the present case concerns the denial of

MODVAT credit claimed by the Petitioner in respect of the excise duty

paid on High Speed Diesel Oil (hereafter ‘HSD’) which was consumed by

the Petitioner for generation of electricity used for the manufacture of

excisable goods in its factory.

Source: Indian Kanoon

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