SANGFROID REMEDIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted.

(2.) This appeal is preferred against the order dated 24th November, 1997 of the Andhra Pradesh High Court in Writ Petition No. 31031 of 1997. Having regard to the nature of the controversy, it is not advisable to go into the merits of the case at this stage. The grievance of the appellant is that the 3rd respondent before passing the impugned order rejecting the claim of the appellant that the product "Shower to Shower" prickly heat powder falls under the Chapter Heading 33.03 and holding the same falls under 33.04 and levying excise duty of Rs. 5.18 crores, has not given any opportunity to substantiate its claim and no notice was served on them by the third respondent before passing the impugned order. Therefore, according to the appellant, the order passed was an ex parte one. When an appeal was preferred before the 2nd respondent with a prayer to dispense with the pre-deposit as laid down under Section 35-F of the Central Excise Act, the appellant was directed by order dated 7-11-1997 to pay the full excise duty amount of Rs. 5,17,76,163 for entertaining and hearing the appeal.

(3.) Aggrieved by the order of the 2nd respondent, the appellant moved the High Court under Article 226 of the Constitution and the High Court while reducing the amount to be paid for hearing the appeal, directed the appellant by the order under appeal to pay Rs. 1.25 crores and give bank guarantee for another sum of Rs. 2 crores.