UNION OF INDIA Vs. MAHESHWARI WOOLLEN MILLS

JUDGEMENT

(1.) - After hearing both counsel, leave is granted and the appeal is disposed of on the merits.

(2.) The respondent (hereinafter referred to as 'the assessee) challenged the validity of a show cause notice dated 2-12-1988 issued by the Collector of Central Excise, Chandigarh under S. 11 A of the Central Excises and Salt Act, 1944. The show cause notice stated that there was information on record from which it appeared that the assessee, during the period from November, 1983 to July, 1988 had, in contravention of the provisions of Central Excise Rules, removed clandes 1, 37, 016 kgs. of woollen worsted yarn of composition 70% wool and 30% nylon without payment of Central Excise Duty and without issuing Central Excise gate passes and thus evaded payment of Central Excise Duty amounting to about Rs. 30 lacs.

(3.) The assessee filed replies to the show cause notice on 11-4-1989 and 28-4-1989. It, however, received what has been described as an "addendum" to the show cause notice on 7th March, 1990 setting out some further material that had come to the notice of the Collector. Thereupon, the assessee filed a writ petition in the High Court of Punjab and Haryana. This writ petition has been allowed by the High Court and the Union of India is in appeal.