{"id":60744,"date":"2001-12-14T00:00:00","date_gmt":"2001-12-13T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-ltd-vs-lions-club-rewa-klions-eye-on-14-december-2001"},"modified":"2015-06-15T13:00:25","modified_gmt":"2015-06-15T07:30:25","slug":"mahindra-mahindra-ltd-vs-lions-club-rewa-klions-eye-on-14-december-2001","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-ltd-vs-lions-club-rewa-klions-eye-on-14-december-2001","title":{"rendered":"Mahindra & Mahindra Ltd vs Lions Club Rewa, Klions Eye … on 14 December, 2001"},"content":{"rendered":"
National Consumer Disputes Redressal<\/div>\n
Mahindra & Mahindra Ltd vs Lions Club Rewa, Klions Eye … on 14 December, 2001<\/div>\n
  \n\n \n\n \n\n \n\n \n\n \n\n NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION\n\n\n\n\n\n\n\n\n\n \n\n\n\n \n\n\n\n\n\n \n\n\u00a0 \n\n\n\n \n\nNATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION \n\n\n\n \n\nNEW DELHI.. \n\n\n\n \n\n\u00a0 \n\n\n\n \n\n \n\n\n\n \n\n REVISION PETITION NO.435 OF 2001 \n\n\n\n \n\n (From\n\nthe order dated 17.2.2000 in Appeal No.1310\/98 \n\n\n\n \n\n  of the State Commission, Madhya Pradesh)\n\n\n\n \n\n \n\n\n\n \n\nMahindra &\n\nMahindra Ltd.  Petitioner\n\n\n\n \n\n\u00a0 \n\n\n\n \n\n Versus\n\n\n\n \u00a0 \n\n\n\n Lions\n\nClub Rewa, Klions Eye Hospital & Anr.  Respondents<\/pre>\n
\u00a0 <\/p>\n
BEFORE:\n<\/p>\n
\u00a0 <\/p>\n
 HONBLE MR. JUSTICE D.P. WADHWA, <\/p>\n
  PRESIDENT.\n<\/p>\n
 HONBLE MR. JUSTICE J.K. MEHRA,<\/p>\n
MEMBER.\n<\/p>\n
 MRS. RAJYALAKSHMI RAO, MEMBER.\n<\/p>\n
 MR. B.K. TAIMNI, MEMBER.\n<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
Central Excise Act – exemption<\/p>\n
notification – refund<\/p>\n
of duty on vehicle used as ambulance – manufacturer failing to seek<\/p>\n
refund within time,<\/p>\n
deficiency service.\n<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
For<\/p>\n
the Petitioner  : Mr. Aditya Narain, Advocate <\/p>\n
  For Mr. J.B. Dadachanji & Co.,<\/p>\n
Advocates <\/p>\n
\u00a0 <\/p>\n
For<\/p>\n
the Respondent No.1 : Ms. Pragati Neekhra, Advocate <\/p>\n
\u00a0 <\/p>\n
For<\/p>\n
the Respondent No..2 : NEMO, Advocate.\n<\/p>\n
 \u00a0 <\/p>\n
 DATED THE 14TH DECEMBER, 2001:\n<\/p>\n
 JUSTICE D.P. WADHWA, J. (PRESIDENT) <\/p>\n
 Petitioner was opposite Party No.2 before the<\/p>\n
District Forum, Rewa. He is<\/p>\n
manufacturer of motor vehicles.\n<\/p>\n
Opposite Party No.1 Star Automobiles<\/p>\n
is its dealer. Complainant who<\/p>\n
is now first respondent before us filed<\/p>\n
a complaint in the District Forum alleging deficiency in service by both the<\/p>\n
opposite parties. Its case was that it<\/p>\n
was running a Eye Hospital in Rewa and for that purpose it purchased a van<\/p>\n
manufactured by the petitioner on 3.3. 97 for Rs.3,75,785\/-. The van was purchased from the dealer. It is not disputed that the van was<\/p>\n
converted into ambulance and was duly registered with the RTO, Rewa. After the<\/p>\n
vehicle was registered with RTO complainant sent a form duly filled up to the dealer by registered post on 9.5.1997 for payment to<\/p>\n
it of the excise subsidy. On 13.11.1997<\/p>\n
complainant sent a letter along<\/p>\n
with permission dated 21.12.1993<\/p>\n
from the Health Department of the State<\/p>\n
Government of Madhya Pradesh, Rewa Office permitting the complainant to<\/p>\n
run Eye Hospital. This was given to the dealer. This was on account of the fact that complainant was entitled to 15% excise<\/p>\n
subsidy on the total price after registration of the jeep as ambulance. In spite of various letters and visits to<\/p>\n
the dealer nothing transpired and<\/p>\n
ultimately a legal notice was sent by registered post to both the dealer and the manufacturer but<\/p>\n
too without effect. This led to the<\/p>\n
filing of the complaint.\n<\/p>\n
 It was<\/p>\n
the case of the dealer that it was<\/p>\n
merely acting as a post office and it was for the manufacturer the petitioner<\/p>\n
to claim refund of the excise duty from<\/p>\n
the Central Excise Department. The dealer said it was in turn approaching the petitioner and it was not therefore, negligent. Petitioner denied the claim of the<\/p>\n
complainant altogether and said that<\/p>\n
the complaint was not maintainable.\n<\/p>\n
The question that arose before the<\/p>\n
District Forum was whether<\/p>\n
service rendered by the manufacturer and the dealer was deficient.\n<\/p>\n
Complainant led evidence to show that it was guaranteed by the dealer<\/p>\n
that it will be entitled to refund of<\/p>\n
15% subsidy on registration of the vehicle as ambulance. Since the amount of subsidy was not<\/p>\n
refunded to the complainant in spite of his approaching the dealer and manufacturer time and again,<\/p>\n
District Forum allowed the complaint and held that complainant was entitled to<\/p>\n
Rs.56,367\/- as 15% excise subsidy from the dealer and also cost of Rs.500\/-.\n<\/p>\n
\u00a0 <\/p>\n
 Against<\/p>\n
that order of the District Forum, the dealer<\/p>\n
filed appeal before the State Commission. The<\/p>\n
petitioner-manufacturer was also<\/p>\n
one of the respondents. State<\/p>\n
Commission found that it was the responsibility of the manufacturer for claiming refund of the excise duty and not that of the dealer. State<\/p>\n
Commission, therefore, modified the order of the District Forum to the extent<\/p>\n
it was held that both the dealer and<\/p>\n
the manufacturer would be jointly and<\/p>\n
severally liable to make the payment.\n<\/p>\n
It is also ordered that in case the dealer make the payment he shall be<\/p>\n
entitled to recover the same from the manufacturer. Now it is the manufacturer feeling aggrieved has filed this<\/p>\n
petition. When the matter came up<\/p>\n
before us for admission we passed the following order:\n<\/p>\n
Our attention has been drawn to<\/p>\n
clause (e) of Exemption Notification<\/p>\n
No.66 (Page 39) where exemption has<\/p>\n
been granted to ambulance of the Government Hospitals or the Hospitals which<\/p>\n
are registered with the Government Department or local authorities. It is stated that the Hospital of the<\/p>\n
IInd Respondent\/Complainant is not so<\/p>\n
registered. However, there is a letter<\/p>\n
by which Health Department of the State of Madhya Pradesh has allowed the IInd<\/p>\n
Respondent\/Complainant to run<\/p>\n
the Eye Hospital. Though we issue<\/p>\n
notice, we require the Petitioner to apply to the Central Excise Authorities for refund of the Central Excise<\/p>\n
duty as permissible under the aforesaid notification. List this Revision Petition on 17.7.2001.\n<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
 In<\/p>\n
pursuance of that order petitioner did apply seeking refund but that application was rejected by the<\/p>\n
Deputy Commissioner, Central Excise<\/p>\n
vide order dated 24.5.2001. That order<\/p>\n
has been brought on record, relevant para of which we reproduce as under:\n<\/p>\n
\u00a0 <\/p>\n
3. The details of the refund claim, in brief, are that a vehicle falling under Ch. No.87.03 cleared<\/p>\n
on payment of duty @ 40% adv., on invoice No.1690 dt. 19.11.96 was subsequently<\/p>\n
registered as Ambulance in the name<\/p>\n
of Rewa Lions Eye<\/p>\n
Hospital, on 13.3.1997 with the R.T.O.\n<\/p>\n
Rewa. According to the notification, (i) the<\/p>\n
manufacturer has to furnish a certificate from the R.T.O . to the effect<\/p>\n
that motor vehicle has been registered<\/p>\n
as ambulance, within three months of the clearance of the said motor<\/p>\n
vehicle from the factory or such<\/p>\n
extended period as the Asstt. Commr. may allow. In this case, the manufacturer did not<\/p>\n
request for extension for this purpose.\n<\/p>\n
(ii) The exemption in case<\/p>\n
of ambulance is only applicable for hospitals, nursing homes etc. as the Central Govt. may notify in the Official Gazette. The<\/p>\n
vehicle was registered as ambulance in the name of Rewa Lions Eye Hospital.\n<\/p>\n
From a copy of certificate No. 643, issued by the Govt. of Madhya Pradesh, it<\/p>\n
seems that the certificate was issued to Lions Club, Rewa, which was<\/p>\n
registered on 14.9.1993 under Societies Registration Act, 1973 (S.No. 44 of 1973).\n<\/p>\n
The assessee also filed a copy of letter dated 21.12.1993, issued by the<\/p>\n
Chief of Medical and Health Dept. , Rewa, permitting the Lions Eye Hospital,<\/p>\n
Rewa to conduct eye related surgeries\/operations. However, the manufacturer did not produce any documents<\/p>\n
evidencing that the Lions Eye Hospital, Rewa was notified by the Central<\/p>\n
Government in the official<\/p>\n
Gazette. (iii) The refund claim shoauld be filed in terms<\/p>\n
of Section 11-B of the Central Excise<\/p>\n
Act.\n<\/p>\n
\u00a0 <\/p>\n
4. On verification of the refund<\/p>\n
claim, it appeared that the refund claim was not filed in time under sec.11-B<\/p>\n
iof C.E. Act. And is liable for rejection.\n<\/p>\n
In view of the foregoing, I pass the following order.\n<\/p>\n
  ORDER <\/p>\n
\u00a0 <\/p>\n
I reject the refund application<\/p>\n
dt. 24.5.2001 filed by the assesses<\/p>\n
under section 11-B of Central Excise<\/p>\n
Act, 1944.\n<\/p>\n
 It could not be disputed<\/p>\n
that immediately the van was registered<\/p>\n
as ambulance a letter was addressed by the complainant to the dealer who had promised that<\/p>\n
complainant would be entitled to refund of 15% of the excise duty in case<\/p>\n
the vehicle is registered as an<\/p>\n
ambulance. Now the dealer says he had<\/p>\n
been writing to the manufacturer requiring<\/p>\n
it to seek refund. But there was no action on the part of the<\/p>\n
manufacturer. It was contended before<\/p>\n
us that that Eye Hospital run by the complainant is not totally registered<\/p>\n
under the relevant notification General<\/p>\n
Exemption No.66 which is issued under<\/p>\n
the Central Excise Act, 1944 by the Central Government. It is not disputed that there could not<\/p>\n
be refund of excise duty @ 15% in case the vehicle was registered as<\/p>\n
ambulence. This exemption applied<\/p>\n
under the following circumstances:\n<\/p>\n
 43.(a)<\/p>\n
.\n<\/p>\n
(e) In the<\/p>\n
case of ambulance, the concessional rate of duty shall apply only when the<\/p>\n
ambulance is supplied to:\n<\/p>\n
\u00a0 <\/p>\n
(i) hospitals, nursing<\/p>\n
homes or sanatoriums run by the Central Governments or a State Government or a<\/p>\n
Union Territory Administration or a local authority, or are registered as such<\/p>\n
with  <\/p>\n
(ii) any Department of the<\/p>\n
Central Government, or a State Government or a Union Territory Administration<\/p>\n
or a local authority; or <\/p>\n
(iii) the India Red Cross<\/p>\n
Society.\n<\/p>\n
\u00a0 <\/p>\n
 Now it will be seen from<\/p>\n
the order of the Deputy Commissioner<\/p>\n
that he rejected the claim of the petitioner-manufacturer who had applied for<\/p>\n
refund on the ground that claim application was not filed within time under<\/p>\n
Section 11-B of the Central Excise Act.\n<\/p>\n
 It<\/p>\n
is for the first time before this<\/p>\n
Commission that an issue is being<\/p>\n
raised that<\/p>\n
complainant-Hospital does not<\/p>\n
satisfy the conditions for claiming exemption. In our view, case of the complainant falls within the exemption<\/p>\n
notification. Even otherwise it has to<\/p>\n
receive a liberal construction inasmuch as<\/p>\n
it is for the benefit of the patients.\n<\/p>\n
But the fact remains that till we passed the order on 19.3.2001 requring<\/p>\n
the petitioner to seek refund on the basis of the notification at no point of time petitioner ever informed the complainant that he was ineligible and no application seeking refund was at all filed. It is a clear case of deficiency on the<\/p>\n
part of the petitioner, the manufacturer.\n<\/p>\n
We, therefore, find no ground<\/p>\n
for us to interfere with<\/p>\n
the impugned order of<\/p>\n
the State Commission in<\/p>\n
our jurisdiction under<\/p>\n
clause (b) of<\/p>\n
Section 21<\/p>\n
of the Consumer Protection Act, 1996. This revision petition is dismissed.\n<\/p>\n
Since<\/p>\n
the petitioner was availing stay of the<\/p>\n
impugned order we direct that the amount as awarded by the District Forum shall<\/p>\n
be paid to the complainant with<\/p>\n
interest @ 12% per  <\/p>\n
annum from the<\/p>\n
date of the order of the State Commission till payment. Complainant  <\/p>\n
shall also be entitled to cost which we assess at<\/p>\n
Rs.2,000\/-.\n<\/p>\n
\u00a0 <\/p>\n
J<\/p>\n
 (D.P. WADHWA)<\/p>\n
 PRESIDENT<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
J<\/p>\n
 (J.K. MEHRA)<\/p>\n
  MEMBER<\/p>\n
\u00a0 <\/p>\n
  (RAJYALAKSHMI RAO)<\/p>\n
  MEMBER<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
.\n<\/p>\n
 (B.K. TAIMNI)<\/p>\n
  MEMBER<\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n
\u00a0 <\/p>\n","protected":false},"excerpt":{"rendered":"
National Consumer Disputes Redressal Mahindra & Mahindra Ltd vs Lions Club Rewa, Klions Eye … on 14 December, 2001 NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION \u00a0 NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION NEW DELHI.. \u00a0 REVISION PETITION NO.435 OF 2001 (From the order dated 17.2.2000 in Appeal No.1310\/98 of the State Commission, Madhya Pradesh) Mahindra & Mahindra […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-60744","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"\nMahindra & Mahindra Ltd vs Lions Club Rewa, Klions Eye ... on 14 December, 2001 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/mahindra-mahindra-ltd-vs-lions-club-rewa-klions-eye-on-14-december-2001\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mahindra & Mahindra Ltd vs Lions Club Rewa, Klions Eye ... on 14 December, 2001 - 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