BHAG SINGH vs MODERN AUTOMOBILES

THIS case is squarely covered by the order dated 7.2.1997 of this Commission in 1st Appeal Nos. 60 & 125 of 1996, whereby the Central Excise Department was directed to refund the amount of 5% rebate alongwith 18% interest thereon with effect from 30.12.1990, which had been charged from the complainant by way of excise duty for using the vehicle as a taxi.

COMPLAINANT Bhag Singh approached the learned District Consumer Forum, Ambala, with the grievance that he had purchased one Maruti Omni Taxi from M/s. Modern Automobiles, Ambala City, who are the dealers of Maruti Udyog, Gurgaon, for Rs. 1,11,926/- on 26.6.1990 for plying it as a taxi, out of the taxi quota. Since the Commissioner of Central Excise had granted a rebate of 5% of excise duty for plying a taxi, which fact was evidenced from the documentary evidence produced by the complainant, he was entitled to the refund of the aforesaid amount. In their reply, the opposite party, however, pleaded that the necessary documents had been submitted to the Central Excise Authorities on 31.12.1990 and it was for them to allow the rebate. However, as the same had not been so allowed by the Central Excise Department, the opposite party was not liable to pay the same. In view of this position, the learned District Consumer Forum dismissed the complaint.

In the appeal before us, the learned Counsel for the complainant has placed firm reliance on the aforesaid order passed by this Commission. After hearing Mr. S.R. Bansal, Advocate, appearing for Modern Automobiles, and Mr. Parmod Kumar appearing for the Maruti Udyog Ltd., Gurgaon, we are of the considered view that the complainant is certainly entitled to the refund of the excise duty at the rate of 5% as granted by the Central Excise Department to all the purchasers of vehicles from the taxi quota, with whom the complainant is also similarly situated. Since the opposite parties M/s. Maruti Udyog and the Modern Automobiles had forwarded the necessary documents belonging to the complainant to the Commissioner/Central Excise Department, we allow the appeal by directing the Assistant Commissioner of Central Excise Department, Gurgaon, to refund the amount of excise duty at the rate of 5% to the complainant alongwith 18% interest thereon, with effect from the date of deposit, i.e. 26.6.1990, within a period of two months from the date of this order. The complainant shall also be entitled to costs of proceedings which are quantified at Rs. 1,000/-. Appeal allowed.