DHARAMPAL PREMCHAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) When these appeals came up for preliminary hearing, the learned counsel for the respondent appeared on advance notice and as demurrer raised the objections about the territorial jurisdiction of this Court to entertain these appeals. For this reason, we heard the counsel for both the parties at length. The facts which have given rise to the question of jurisdiction, we may clarify that we are taking note of those facts only which are relevant for deciding this controversy eschewing other details which do not concern the subject matter at this stage.

(2.) The appellant is in the business of manufacture of 'Baba' brand Scented Chewing Tobacco, Scented Ellaichi, Scented Supari, etc. Though it has a registered office at Chandni Chowk, New Delhi, one of its manufacturing units is situated in Barotiwala, District Solan, Himachal Pradesh.

(3.) Show cause notice dated 02.04.2003 was issued by the Office of the Deputy Commissioner, Central Excise Division, Shimla to the said unit of the appellant at Himachal Pradesh under Section 11A of the Central Excise Act, 1944 (hereinafter referred to as 'the Act') proposing to raise demand of short paid National Calamity Contingent Duty ('NCCD' for brevity) in the sum of 54,0004/- on additive mixture cleared during the period from 01.04.2002 to 16.10.2002 along with interest under Section 11AB of the Act. Penalty under section 25 of the Central Excise Rules, 2002 (hereinafter referred to as 'the Rules') was also proposed. Similar show cause notice dated 19.06.2002 for another period, i.e., 01.10.2001 to 31.03.2002 and 01.04.2002 to 16.10.2002 was issued vide two separate orders in two appeals. The appellant replied to the said show cause notice claiming exemption from the payment of duties. However, the Deputy Commissioner passed orders dated 28.07.2004 holding that the NCCD is leviable during the relevant period and confirmed the demand of NCCD along with interest and imposed personal penalty of 50,000/-.