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M/s. Bhuwalka Steel Industries Ltd & Another v/s Union of India & Others


Company & Directors' Information:- S A L STEEL LIMITED [Active] CIN = L29199GJ2003PLC043148

Company & Directors' Information:- M M S STEEL PRIVATE LIMITED [Active] CIN = U27109TZ1996PTC006849

Company & Directors' Information:- BHUWALKA STEEL INDUSTRIES LIMITED [Active] CIN = L27209KA1981PLC004343

Company & Directors' Information:- G. O. STEEL PRIVATE LIMITED [Active] CIN = U27100PB2007PTC031033

Company & Directors' Information:- J M G STEEL PRIVATE LIMITED [Strike Off] CIN = U27105BR1992PTC004985

Company & Directors' Information:- A K C STEEL INDUSTRIES LTD [Active] CIN = L27109WB1957PLC023360

Company & Directors' Information:- H L STEEL PVT LTD [Active] CIN = U27107AS1992PTC003726

Company & Directors' Information:- AMP INDUSTRIES LIMITED [Active] CIN = L51909AS1985PLC002332

Company & Directors' Information:- K V M STEEL PRIVATE LIMITED [Active] CIN = U29141DL1988PTC031248

Company & Directors' Information:- K STEEL PRIVATE LIMITED [Strike Off] CIN = U27104JH1973PTC000998

Company & Directors' Information:- R. J. STEEL PRIVATE LIMITED [Active] CIN = U28112MH2009PTC193047

Company & Directors' Information:- M M STEEL PRIVATE LIMITED [Active] CIN = U27107MH2001PTC131270

Company & Directors' Information:- S K P STEEL INDUSTRIES PRIVATE LIMITED [Active] CIN = U27310WB1997PTC085261

Company & Directors' Information:- B L STEEL PVT LTD [Active] CIN = U51909WB1981PTC034021

Company & Directors' Information:- R K G STEEL PRIVATE LIMITED [Active] CIN = U27109DL2004PTC128852

Company & Directors' Information:- V B STEEL PRIVATE LIMITED [Active] CIN = U28112MH2010PTC211691

Company & Directors' Information:- I B STEEL COMPANY PRIVATE LIMITED [Strike Off] CIN = U28910MH2010PTC211344

Company & Directors' Information:- A M R STEEL INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U27100MH2010PTC203176

Company & Directors' Information:- J S C STEEL PRIVATE LIMITED [Active] CIN = U27106UP2013PTC061568

Company & Directors' Information:- S. M. STEEL PRIVATE LIMITED [Active] CIN = U51101MH2013PTC239811

Company & Directors' Information:- R K P STEEL LTD [Active] CIN = L27109WB1980PLC033206

Company & Directors' Information:- C P STEEL PRIVATE LIMITED [Active] CIN = U27100WB2008PTC127447

Company & Directors' Information:- A. K. J. STEEL PRIVATE LIMITED [Active] CIN = U28112WB2010PTC144880

Company & Directors' Information:- THE INDIA COMPANY PRIVATE LIMITED [Active] CIN = U74999TN1919PTC000911

Company & Directors' Information:- C D STEEL PVT LTD [Under Liquidation] CIN = U27109WB1981PTC034340

Company & Directors' Information:- T M S STEEL PRIVATE LIMITED [Strike Off] CIN = U02710TZ1996PTC007498

Company & Directors' Information:- P M R STEEL PRIVATE LIMITED [Active] CIN = U51102DL2003PTC122675

Company & Directors' Information:- C T STEEL PVT LTD [Active] CIN = U27109WB2005PTC106634

Company & Directors' Information:- P G STEEL PVT LTD [Strike Off] CIN = U24111AS1998PTC005409

Company & Directors' Information:- STEEL UNION PVT LTD [Active] CIN = U51420WB1940PTC010133

Company & Directors' Information:- A AND S STEEL PRIVATE LIMITED [Active] CIN = U63090DL1987PTC027835

Company & Directors' Information:- K S STEEL INDUSTRIES PRIVATE LIMITED [Active] CIN = U27320OR1993PTC003340

Company & Directors' Information:- A S STEEL INDUSTRIES PVT LTD [Strike Off] CIN = U27209WB1983PTC035796

Company & Directors' Information:- BHUWALKA & CO. PVT LTD [Active] CIN = U51109WB1952PTC020591

Company & Directors' Information:- J S STEEL PRIVATE LIMITED [Active] CIN = U52190CT1978PTC001432

Company & Directors' Information:- U M STEEL PRIVATE LIMITED [Strike Off] CIN = U27209TN1986PTC013670

Company & Directors' Information:- J B STEEL INDUSTRIES PRIVATE LIMITED [Strike Off] CIN = U74999MH1954PTC009352

Company & Directors' Information:- R. N. STEEL PRIVATE LIMITED [Active] CIN = U27100WB2007PTC116588

Company & Directors' Information:- P M STEEL PRIVATE LIMITED [Active] CIN = U27105MP1982PTC001915

Company & Directors' Information:- M R STEEL (INDIA) PRIVATE LIMITED [Active] CIN = U27100TG2013PTC088808

Company & Directors' Information:- INDIA CORPORATION PRIVATE LIMITED [Active] CIN = U65990MH1941PTC003461

Company & Directors' Information:- B N STEEL INDUSTRIES PVT LTD [Active] CIN = U27109WB1959PTC024368

Company & Directors' Information:- C K STEEL PVT LTD [Active] CIN = U29150WB1975PTC030259

Company & Directors' Information:- K STEEL & COMPANY PVT LTD [Strike Off] CIN = U51909WB1991PTC053960

Company & Directors' Information:- N S STEEL PVT LTD [Strike Off] CIN = U27106PB1980PTC004266

Company & Directors' Information:- R M STEEL INDUSTRIES PRIVATE LIMITED [Active] CIN = U74899DL1981PTC011723

Company & Directors' Information:- R C STEEL PVT LTD [Strike Off] CIN = U28112AS1980PTC001811

Company & Directors' Information:- UNION STEEL (INDIA) PRIVATE LIMITED [Strike Off] CIN = U27107MH1995PTC094592

Company & Directors' Information:- INDIA STEEL INDUSTRIES PVT LTD [Strike Off] CIN = U28111WB1959PTC024156

Company & Directors' Information:- P D STEEL PRIVATE LIMITED [Strike Off] CIN = U74899DL1989PTC038426

Company & Directors' Information:- A K STEEL PVT LTD [Strike Off] CIN = U99999DL1961PTC003566

Company & Directors' Information:- H S P STEEL PRIVATE LIMITED [Strike Off] CIN = U27100MH2013PTC242983

Company & Directors' Information:- D H STEEL PRIVATE LIMITED [Strike Off] CIN = U27109RJ2012PTC039742

Company & Directors' Information:- R A STEEL PRIVATE LIMITED [Active] CIN = U51909MH2014PTC253625

Company & Directors' Information:- N. V. STEEL PRIVATE LIMITED [Strike Off] CIN = U27310DL2009PTC186541

Company & Directors' Information:- K. D. STEEL PRIVATE LIMITED [Strike Off] CIN = U28939DL2012PTC244467

Company & Directors' Information:- STEEL INDIA PRIVATE LIMITED [Strike Off] CIN = U00349KA1958PTC001309

    Civil Appeal Nos. 7823, 7824, 7825 of 2014, SLP(C) Nos. 16445 of 2010, 2014 of 2009, T.C.(C) Nos. 20, 22, 23-24, 34, of 2010, 1, 2, 3, 4, 5, of 2011, 106 of 2015, 419, 691, 1200 of 2016, SLP(C) No. 34051 of 2017

    Decided On, 05 December 2019

    At, Supreme Court of India

    By, THE HONOURABLE MR. JUSTICE ROHINTON FALI NARIMAN
    By, THE HONOURABLE MR. JUSTICE ANIRUDDHA BOSE & THE HONOURABLE MR. JUSTICE V. RAMASUBRAMANIAN

    For Appearing Parties: Nalini Chidambaram, Sr. Advocate, Anushree Menon, Vikas Mehta, K. Radhakrishnan, Sr. Advocate, Shirin Khajuria, Nisha Bachi, Pooja Sharma, B. Krishna Prasad, Anil Katiyar, Sheena Taqui, Suvarna Dubey, Kshitij Vaibhav, Bina Gupta, Balbir Singh, Sr. Advocate, Shantanu Tyagi, Nandita Chauhan, S.S. Shroff, M.P. Devanath, Saurabh Mishra, Ugra Shankar Prasad, Jitendra Mohan Sharma, Shreekant N. Terdal, M/s. COAC, Ruchira Goel, Purushottam Sharma Tripathi, Advocates.



Judgment Text


R.F. Nariman, J.

The present reference arises from a judgment of the Division Bench of this Court reported as Bhuwalka Steel Industries Limited and Another v. Union of India and Others, (2017) 5 SCC 598. The question before the Court was set out as follows:-

"20. The validity of Rule 5 of the 1997 Rules is challenged both before the High Court and before us on two grounds:

1. That the Rule is ultra vires the authority conferred under Section 3-A of the Act; and

2. That the Rule is violative of Article 14 of the Constitution of India. Because the Rule creates two classes of manufacturers:-

(i) whose ACP is determined to be more than their actual production in the Financial Year 1996-97.

(ii) Whose ACP is determined to be less than their actual production for the Financial year 1996-97; and

imposes an irrational tax burden on the second of the above-mentioned two classes of manufacturers falling within the ambit of the 1997 Rules."

2. This question has not been answered by the Division Bench. Instead, the Division Bench went into a completely different question, which was posed as follows:-

"51. Whether an assessee who chooses once to pay duty in terms of Rule 96-ZP(3) can be compelled to pay duty calculated in accordance with the said Rule for all times to come without any regard to the actual production is a question which requires examination."

3. This question was then referred to a larger Bench as follows:-

"63. Therefore, we find it difficult to accept the submission of the respondent that the issue is covered by the judgments of this Court in Venus Castings (2000) 4 SCC 206 and Supreme Steels (2001) 9 SCC 645. In our opinion, for the reasons mentioned above, these two judgments require a further examination. Apart from that, these judgments did not deal with vires of Rule 96-ZP(3). However, in view of the fact that Supreme Steels is a decision rendered by a Bench of three learned Judges, we deem it appropriate that the question of law be settled by a Bench of an appropriate strength. We, therefore, direct the Registry to place the matter before Hon'ble the Chief Justice of India for further orders."

4. Mrs. Nalini Chidambaram, learned Senior Advocate appearing on behalf of the appellant-assessee, states that she came to Court challenging the vires of Rule 5 instead of which a completely different question has been referred to a larger Bench. She further submits that she is not, in any way, challenging the fact that an assessee can be compelled to pay duty in terms of Rule 96-ZP(3) without regard to actual production which is laid down section 3A(4) of the Central Excise Act.

5. This being the case, we answer this reference by stating that the question posed before us did not arise at all on facts and the question which has been referred is not something which the assessee disputes. Accordingly, the matter is sent back to a Division Bench to decide the questions stated in

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para 20 of Bhuwalka Steel Industries Limited and Another (supra). The issues other than the issue raised in para 51 of the judgment in Bhuwalka Steel Industries Limited and Another (supra) may also be decided in the other tagged matters by the Division Bench. 6. The appeals and the tagged matters stand disposed of accordingly.
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