UNION OF INDIA AND ORS. versus TATA ENGINEERING AND LOCOMOTIVE CO., LTD. ETC.

Citation: [1997] SUPP. 5 S.C.R. 109 · Decided: 10-11-1997 · Supreme Court of India · Bench: S.C. SEN, M. JAGANNADHA RAO · Disposal: Appeal(s) allowed

Judgment (excerpt)

UNION OF INDIA AND ORS. 
A 
v. 
TATA ENGINEERING AND LOCOMOTIVE CO., LTD. ETC. 
NOVEMBER IO, 1997 
[SUHAS C. SEN AND M. JAGANNADHA RAO, JJ.] 
B 
Constitution of India, 1950 : Article 226. 
Excise duty-Computation of-Power of competent authority-Extent 
of judicial control-Held High Court in exercise of its jurisdiction cannot C 
give guidance to Assistant Collector about the manner and mode in which 
the assessment should be made. 
Excise duty-Assessment of-Price list of vehicles sold submitted by 
respondent company-Assessment made by Assistant Collector of Excise-
Writ filed by respondent Company-Direction given by High Court to Assistant D 
Collector-To pass final order on all the price lists submitted by respondent 
company-The price at which the Company sold the vehicles at the factOJy 
gate should be the normal price for the purpose of computation of the value 
of the excisable goods-Court also held that price lists of Regional Sales 
Offices of Tata Engineering & Locomotive Co. (TELCO) was not relevant for E 
passing final orders on the price lists submitted by the company-Appeal 
preferred by Union of India-Held the writ petition should not have been 
entertained by the High Court at all-The Assistant Collector is entitled to 
complete the assessment as he thinks fit in exercise of his judgment-He can 
cal/ for and examine whatever documents he considers relevant-The Court 
should not try to control the mode and manner in which an assessment F 
should be made. 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 7645of1997. 
From the Judgment and Order dated 27.9.88 of the Patna High Court in 
G 
C.W.J.C. No. 802of1988 (R). 
N.K. Bajpai and V.K. Verma for the Appellants. 
Soli J. Sorabjee, Ravinder Narain,.Sridharan, Ms. Amrita Mitra, Amit 
Bansal and Ms. Juhi Singh for M/s. J.B.D. & Co. for the Respondent. 
109 
H 
A 
B 
c 
D 
E 
110 
SUPREME COURT REPORTS [1997) SUPP. 5 S.C.R. 
The following Order of the Court was delivered : 
Leave granted. 
Union of India has come up in appeal against the judgment and order 
of the Division Bench of the Patna High Court directing the Assistant Collector 
of Central Excise, Jamshedpur, to pass without delay appropriate final order 
on all the price lists already submitted by the Company. The Court also held 
that the price at which the Company sold the vehicles at the factory gate at 
Jamshedpur should be the normal price for the purpose of computation of the 
value of the excisable goods. The Court also held that the Assistant Collector 
of Central Excise could only call for relevant documents for the purpose of 
assessment of the value of the excisable goods. In .the facts of this case, price 
lists of Regional Sales Offices of Tata Engineering & Locomotive Co. (TELCO) 
could not be said to be relevant for passing final orders on the price lists 
submitted by the company. 
The appellant has contended that it was necessary for the Excise Officer 
to examine the price at the Regional Sales Offices because two types of prices 
were being charged at the factory gate of the Company at Jamshedpur. It has 
been contended in reply that the bulk of the sales made by the Company was 
to the dealers; a small portion of sales was effected to sub-dealers directly 
for which full particulars were·furnished. Moreover, this point was not raised 
before that High Court when the writ petition was heard. 
In our view, this writ petition should not have been entertained by the 
High Court at all. The Assistant Collector is entitled to complete the assessment 
F as he thinks fit in exercise of his judgment and according to his understanding 
of the law and facts. For this purpose, he can call for and examine whatever 
documents he considers relevant. If the Assistant Collector fails to follow any 
judgment of the High Court or this court, the assessee had adequate statutory 
remedies by way of an appeal and revision against the assessment order. The 
G Court should not try to control the mode and manner in which an assessment 
should be made. If the Assistant Collector is of the view that enquiries are 
necessary to be made as to the price at which trucks were sold at the Regional 
Sales Offices, the· Court cannot stop him from making such enquiries. 
Mr. Sorabjee, appearing on behalf of the respondents, has complained 
H that the assessments are going on endlessly and without due regard to an 
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.,. 
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U.0.1. v. TATA ENGINEERING AND LOCOMOTIVE CO., LTD. 111 
earlier judgment of the Patna 

Excerpt shown. Read the full judgment & AI analysis in Lexace.