Plea on ITC dues likely next week

Revenue dept has till October 10 to file review petition.

The government is considering filing a review petition against the Supreme Court decision to grant tobacco giant ITC excise duty relief in the case relating to the alleged evasion of Rs 803 crore in taxes.

"We will finalise our stand within a day or two. The appeal could be filed next week," a senior finance ministry official told Business Standard.

"The Supreme Court has interpreted the notifications in a certain manner, which has led to the decision being announced in favour of ITC. We have some grounds, we are discussing them," he added.

There have been instances of the government having to refund duties following court directives. However, refund of such a large sum is unprecedented. The revenue department has time till October 10 to file a review petition against the Supreme Court decision announced on September 10.

According to the Supreme Court order, the government will have to refund the Rs 350 crore pre-deposit paid by the company. ITC had appealed to the court against the Central Excise Gold Control Appellate Tribunal's (Cegat's) order upholding the charge of excise evasion.

The revenue department, too, had appealed to the court, challenging the Cegat's decision to waive duties on job workers and reducing ITC's duty liability.

The case had been dragging on in court for 17 years. ITC was accused of selling cigarettes at prices higher than those printed on the packs, which was the basis for levying duty for the period March 1983 to February 1987.