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

                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
C.W.J.C. No. 802of1988 (R).                                               G

     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
    110                      SUPREME COURT REPORTS [1997) SUPP. 5 S.C.R.

A         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
B   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
c   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.
D
          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
E   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.