HC asks Central Excise to give personal hearing to Alstom

The authority has to issue show cause notice and conduct personal hearing related to classification of Alstom's imports

The Madras High Court has asked the Central Excise office to issue a show cause notice to power transmission major Alstom T&D India and give adequate opportunity for the company to respond and afford a personal hearing in a matter related to the classification of products relating to relays imported by the company.

While the company argued that the imports have to be given a duty concession as per a central notification, the Excise Office asked the company why a duty cannot be imposed under another provision.

The petition was filed by the company to quash an order passed by the authority stating that the certificate for availing the benefits under the particular customs notification cannot be granted as a measure of abundant caution to safeguard revenues.

Commenting on the order, Alstom T&D India spokesperson said: “While deciding the writ petition filed by Alstom T&D India Limited (on the issue relating to the classification of relays manufactured by the company), the High Court of Madras has directed the Excise authorities to adjudicate the matter after giving sufficient opportunity to the company. The company will accordingly take steps to provide its inputs to the excise authorities during the adjudication proceedings.”

The central government has granted a concessional rate of duty on goods imported for the manufacture of excisable goods provided that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. Alstom, which manufactures electrical equipment like transformers, circuit breakers, control panels and relays, and registered as a large taxpayer unit (LTU), filed an application in April, 2014, under the rules regarding the use of the imported goods for the manufacture of relays.