Madurai Bench In Favour Of VV Mineral Mining

VV Mineral Single BenchThe Madurai bench of the Madras High Court, granted an interim stay on its single judge order of 28th October. VV Mineral, said to be the country’s largest manufacturer and exporter of Garnet and Ilmenite, is at the benefitting end. The company won’t have to pay Rs. 76.67 crore to the commissioner of Excise duty that was to be given earlier as Central Excise from 2011 to 2014.

A writ appeal filed by the commissioner of central excise challenging the order was presented to the division bench of Justices V Ramasubramanian and N Kirubakaran.

After receiving the show cause notice issued by the commissioner of central excise on 26th December, 2014, VV Mineral Mining did not delay in challenging it and moved to the high court bench. VV Minerals India claimed that extracting minerals from sand, technically falls under the category of ‘mines’, thus legally defending that the minerals were supposed to be exempted from excise duty.

Also, VV Mineral was never provided with all the documents required to help the firm give an effective reply, said VV Mineral Vaikundarajan, Managing Director.

The bench directed the commissioner to provide documents on which the show cause notice was issued and to provide all the other documents that might be needed. Still, the commissioner failed to provide the documents on time. Justice S Vaidyanathan repetitively asked the excise office to provide the documents. In the end, the commissioner got upset over the order and preferred the appeal.

Thus the division bench decided to issue an interim stay on the order passed on October 28 and adjourned the hearing.

Advertisements