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

- **Citation:** [1997] Supp. 5 S.C.R. 109
- **Court:** Supreme Court of India
- **Decided:** 1997
- **Case number:** Civil Appeal No. 7645of1997
- **Bench:** Suhas C. Sen, M. Jagannadha Rao
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/union-of-india-and-ors-v-tata-engineering-and-locomotive-co-ltd-etc-15897
- **Pages:** 3

## Headnote

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 ExciseWrit 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.

## Text

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 ExciseWrit 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
·--·
.,.
'
-
U.0.1. v. TATA ENGINEERING AND LOCOMOTIVE CO., LTD. 111
earlier judgment of the Patna High Court in respect of an earlier assessment A
year on the very same issues. Whether the controversy raised in this case
is covered by an earlier judgment of the High Court is a matter to be decided
by the Assistant Collector. He will have to decide all questions of fact and
law. He has to make whatever enquiries he thinks necessary for determination
of the value of excisable goo1s. The High Court in exercise of its jurisdiction B
cannot give guidance to Assistant Collector about the manner and mode in
which the assessment should be made.
We are of the view that the High Court was in error in entertaining this
writ petition. Therefore, the appeal is allowed and the judgment of the High
Court under appeal is set aside. There will be no order as to costs.
C
The Assistant Collector is directed to complete the assessment as
expeditiously as possible.
T.N.A.
Appeal allowed.