ANILMA ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) Since a short point is involved we have heard the learned Counsel for the parties on the main writ petition for purposes of its final disposal with their consent.

(2.) By this petition under Article 226 of the Constitution of India the petitioner has challenged the banning order dated 5th May 1999 passed against the petitioner firm by the respondent railways.

(3.) Briefly the facts are that the petitioner is engaged in manufacturing of PVC cables which it used to supply to the Railway. The petitioner firm was on the approved list of suppliers of the said material to the Railways. The item manufactured by the petitioner is subjected to payment of excise duty under the Central Excise Act. On 13th February 1998 the Department of Central Ejxcise, Govt. of India issued a show cause notice to the petitioner alleging evasion of excise duty by the petitioner. On 28th May 18, the Commissioner of Central Excise confirmed a demand of duty in the sum of Rs. 63,50,509.00 and a penalty of Rs. 50 lacs was also imposed. A further penalty of Rs. 10 lacs was imposed on the partners of the petitioner firm. The petitioner challenged the said order by way of an appeal before the Central Excise & Gold Control Appellate Tribunal. alongwith the appeal the petitioner also applied for stay of the direction regarding payment of duty and penalty. On the said application the Tribunal passed an order dated 22nd December 1998 that in view of the fact that the petitioner had already deposited a sum of Rs. 55 lacs towards duty any further deposit was not being insisted upon. In other words requirement of pre-deposit of the balance amount by way of duties and penalties was dispensed with. The recovery of these amounts was also stayed during the pendency of the appeals.