75th Founding Day Lecture Meeting on “India@2030” Know More

April 2016

2016 (41) STR 418 (Guj.) Devang Paper Mills Pvt. Ltd. vs. Union of India

By Puloma Dalal
Jayesh Gogri
Mandar Telang Chartered Accountants
Reading Time 1 mins
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Mere mentioning of incorrect code does not amount to non-payment of duty.

Facts
The Appellant by oversight deposited excise duty in an incorrect assessee code. This fact was informed to the department with a request to rectify the same. However, the department rejected the request and issued Show Cause Notice for recovery of duty with penalty and interest. The said notice was challenged by filing the present writ petition.

Held
The High Court held that merely mentioning of an incorrect code does not amount to non-payment of duty as government had received payment in that incorrect code and this fact was not denied. Further, it was noted that there was no separate manufacturing activity inviting separate duty liability under that code. Accordingly, the department directed the accounting division to give due credit.

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