GTC Industries Ltd. Vs Collector of Central Excise (Supreme Court)
Summary: The Supreme Court dismissed the civil appeals filed by GTC Industries Ltd., now known as Golden Tobacco Limited, and endorsed the Delhi High Court’s rejection of the challenge to the constitutional validity of Section 9D of the Central Excise Act, 1944. The provision concerns the relevance of statements recorded during inquiries under the Act. The appeals arose from a dispute concerning central excise proceedings and the statutory framework governing the evidentiary use of such statements.
The Supreme Court noted that no surviving dispute required adjudication. Nevertheless, the appellants had unnecessarily prolonged the proceedings before the Court. The Bench comprising Justice S. Ravindra Bhat and Justice Dipankar Datta therefore dismissed the appeals in terms of its signed non-reportable judgment. The operative order expressly endorsed the High Court’s position insofar as it had rejected the constitutional challenge to Section 9D.
The Court imposed costs of Rs. 5,00,000 on the appellants. The amount was directed to be paid within one month to a charitable organisation providing assistance and relief to children suffering from cancer. Proof of payment was required to be produced before the Registrar within two weeks thereafter. The Registrar was directed to verify that the recipient organisation genuinely provided such assistance. In the event of default, the costs were recoverable as arrears of land revenue. All pending applications were also disposed of.
FULL TEXT OF THE SUPREME COURT PROCEEDINGS
Hon’ble Mr. Justice Dipankar Datta pronounced the non- reportable judgment of the Bench comprising Hon’ble Mr. Justice S. Ravindra Bhat and His Lordship.
The appeals are dismissed in terms of the signed non- reportable judgment.
The operative part of the judgment reads as follows:
“ While dismissing the civil appeals, we endorse the views of the High Court insofar as spurned the challenge of the appellants to the constitutional validity of section 9-D of the Excise Act.
For unnecessarily protracting the proceedings before this Court, although no lis survived for resolution, we impose costs of Rs. 5,00,000/- on the appellants. This amount is to be paid to any charitable organization involved in providing help, assistance and relief to children suffering from cancer. Such costs shall be paid within a month from date. Within two weeks thereof, proof of payment shall be produced before the Registrar who shall satisfy himself that the recipient organization is, in fact, providing care to children suffering from cancer. In default thereof, the amount of costs shall be recovered as arrears of land revenue.”
Pending application(s), if any, are disposed of.
