KAMKHAYA STEEL P LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) . We propose to dispose of CWP Nos.1729, 1740, 1744-45/2002 by a common judgment. For the sake of convenience, facts of only CW 1729/02 are recapitulated. We are informed that the facts of other petitions are more or less identical.

(2.) . In this petition the petitioner has prayed that Section 3A of the Central Excise Act, 1944 empowering the Central Government to charge excise duty on the basis of capacity of production in respect of notified goods, which was inserted in the Act w.e.f. 14.5.1997 by Section 81 of the Finance Act, 1997 be deleted as unconstitutional and violative of Article 14, 19 & 265 of the Constitution of India. The petitioner has also prayed that Rule 96 of the Central Excise Act, 1944 be also struck down. The petitioner has also prayed that the Induction Furnance Annual Capacity Determination Rules, 1997 be also struck down by the Central Government in exercise of the powers conferred by sub-Section (2) of Section 3A of the Act. The petitioner has further prayed that Notification No.24/97-C.E. dated 1.8.1997 be also struck down.

(3.) . The petitioners have prayed that sub-Rule (3) of Rule 96 ZO of the Central Excise Rules is not only ultra vires of Section 3A of the Act but also of the rules making powers of the Central Government under Section 37 of the Act. Therefore, the same be also struck down.