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VST Industries Limited
have struck down the levy of Entry
without payment of duty during the
the Writ Petitions within a period
Tax on the ground that it is violative
period April 1996 to March 2002.
of two months from the date of
of Article 301 and not saved under
An appeal against the said Order
communication of the Order
the Article 304(b) of the
has been filed by the Excise
without giving unnecessary
Constitution, as it is not
Department and is presently
adjournments. The matter is
compensatory in the manner
pending in the Hon'ble Supreme
pending in the Hon'ble Guwahati
required in terms of the Supreme
Court.
High Court.
Court judgement in the case of
M/s. Jindal Stainless Lid.
In the meantime, the Hon'ble
iii. Misclassification of plain
Thereafter, several states such as
Supreme Court by its Order dated
cigarettes
Uttar Pradesh, Bihar and Haryana
27th November, 2008 has
have attempted to re-introduce
remanded various other similar
As mentioned in last year's Report,
appeals pertaining to other
the Excise Department issued a
Entry Tax by amending the original
show cause notice dated 5th
Acts, sparking a fresh round of
manufacturers back to their
February, 2008 on your Company
legal challenges in the High Courts.
respective
Tribunals for
Most of the appeals filed by the
re-adjudication in the light of
demanding differential duties of
individual facts of each case.
about Rs.41.12 crore covering the
various states, and individual
Notices for subsequent periods
period from July 2003 to
companies have been clubbed
together. The Hon'ble Supreme
have also been received by your
December 2007 on account of
alleged misclassification of filter
Court by its Order dated 18th
Company which have been kept
December, 2008 in the batch of
pending awaiting the decision of
cigarettes as non-filter cigarettes.
cases headed by Jai Prakash
the Hon'ble Supreme Court.
This is with specific regard to
manufacture of certain brands of
Associates vs the State of MP has
ii. North-East
non-filter cigarettes where the
referred a number of vital questions
As mentioned in last year's Report,
mouth-end of the cigarette rod
on levy of Entry Tax to the
the Excise Department had
comprising of Cut Rag Stem (CRS)
Constitutional Bench in terms of
demanded a sum of Rs.6.90 crore
has been considered by the
Article 145(3) of the Constitution
rom two of your Company's former
Department to be a filter cigarette
which are
still pending
contract manufacturers, by way of
and differential duty demanded, as
adjudication.
interest on the principal amount of
payable for a filter cigarette. Based
EXCISE
Rs.3 1.20 crore repaid to the Excise
on the representations made by
Department, consequent upon the
your Company, an Order dated
i. Gay Wrappers
judgement of the Hon'ble Supreme
7th September, 2009 was passed
As mentioned in last year's Report,
Court dated 19th September,
by the Commissioner of Central
the Customs, Excise and Service
2005. The
two
contract
Excise whereby all further
Tax Appellate Tribunal, Bangalore
manufacturers had filed Writ
proceedings were dropped relying
by its Order dated 8th October,
Petitions challenging the said
on the judgement dated 3rd
2004, had allowed your
demands in the Hon'ble Guwahati
September, 2008 of the Hon'ble
Company's appeal and set aside
High Court and obtained Interim
Supreme Court which held that
the demand of the Excise
Orders staying partial recovery
similar cigarettes made by another
Department for an amount of
until final disposal. Against the said
manufacturer are classifiable as
Rs.3.62 crore (including penalty
plain cigarettes.
and interest @ 24%) on the ground
Interim Orders, the Department had
filed appeals in the Hon'ble
iv. Tobacco Refuse
that Gay Wrappers (printed paper
Supreme Court. By its Order dated
Your Company has received show
used for wrapping cigarette
15th April, 2009 the Hon'ble
cause notices demanding recovery
packets) had been manufactured
Supreme Court has requested the
of duty on cut tobacco used in the
and consumed by your Company
Hon'ble High Court to dispose off
manufacture of tobacco refuse
Annual Report 2009-10
Source: https://www.industrydocuments.ucsf.edu/docs/rybx0223

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