INSPECTOR OF CENTRAL EXCISE Vs. S T VENKATARAMANAPPA

JUDGEMENT

(1.) These appeals are by the appellants who were the respondents (revenue) and are directed against the common order dated 21-11-1980 of Srinivasa Iyengar, J., allowing Writ Petitions Nos. 3510, 3511, 7400 to 7407 of 1979 filed by the respective respondents who were the petitioners.

(2.) The respondents are growers and curers of tobacco in the places licensed under the Central Excises and Salt Act of 1944 (Central Act No. 1 of 1944) and the Central Excise Rules of 1944 framed thereunder ('the Act and the Rules'). As curers of tobacco, the respondents are exigible to excise duty under the Act.

(3.) On different dates, the respondents sold different quantities of tobacco grown and cured by them to one Shri K. Subramanyam, a power of attorney holder of one Sri P. Nanjappan of Padupalyam Gobi of Tamilnadu State, a licenced warehouseman and a dealer in tobacco, without however, making payment of excise duty chargeable on such tobacco under the Act. On effecting such sales, the respondents delivered such tobacco to Subramanyam, issued him with requisite transport passes and reported that fact also to the Superintendent of Central Excise of the area. For reasons that are unnecessary to notice and examine, the cured tobacco sold by the respondents neither reached Padupalyam Gobi nor Nanjappan made payment of the excise duty on the same. In that view, the Superintendents of Hiriyur and Tumkur evidently with the approval or concurrence of their superior officers by separate but identical demands called upon them to make payment of the duty due thereon under the Act. On receipt of those demands, the respondents in Writ Appeals Nos. 387 to 390 and 394 of 1981 who were the petitioners in Writ Petitions Nos. 3510, 3511, 7400, 7401 and 7405 of 1979 paid the excise duty demanded from them under protest and the others did not make payment of the amount demanded from them. But, all of them approached this Court under Article 226 of the Constitution challenging the demands made against them and seeking for appropriate reliefs. On consolidating their writ petitions, Srinivasa Iyengar, J. by a common order made on 21-11-1980 has allowed them quashing the demands and directing refunds to those who had made payments. Hence, the appeals.