GOVERNMENT OF INDIA Vs. A.S. BAVA

JUDGEMENT

(1.) THE appellants in this appeal are the Secretary, Ministry of Finance (Department of Revenue and Insurance), Government of India, New Delhi, the Secretary, Central Board of Excise and Customs, New Delhi and the Collector of Customs and Central Excise, Cochin. The appeal is against the judgment of a learned single judge of this Court allowing O.P. No. 2007 of 1976 filed by the respondent herein - hereinafter referred to as the writ petitioner -quashing the order Ext. P 11 passed by the Government of India in its capacity as the revisional authority under Section 36 of trie Central Excises and Salt Act (Act 1 of 1944) -herein - after called the Act -and directing the Government of India to consider afresh 'the question of duty payable by the petitioner' and also the quantum of such duty so payable under Rule 160 of the Central Excise Rules, 1944 in accordance with law.

(2.) THE writ petitioner is a firm carrying on business in tobacco at Cochin on the strength of licences issued to it by the Central Excise authori - ties. The petitioner obtained two transport permits for transportation pf 570 bags of Biri tobacco from its warehouse at Cochin to the warehouses of two licensees, one at Quilon and Anr. at Kayamkularn.

(3.) IN the meantime, on 21 -2 -1964 another notice had been issued to the petitioner directing the firm to show cause why its petition dated 6 -11 -1961 for remission of duty should not be dismissed on the grounds firstly that Rule 147 of the Central Excise Rules, whereunder the prayer for remission had been made, applies to goods lodged in a warehouse and secondly that the alleged accidental loss of tobacco in the backwaters near Thanneermukkom reported by the firm was not genuine. Exts. P4 and P5 are the detailed replies submitted by the petitioner to the notices Exts. P1 and P3. The matter was ultimately disposed of by the Collector of Customs and Central Excise, Cochin by an elborate order dated 19 -8 -1965, a copy of which was produced along with the Original Petition and marked as Ext. P7. By the said order the Collector rejected the request of the petitioner -firm for the remission of excise duty and called upon the petitioner to pay duty in respect of the entire quantity of 570 bags of biri tobacco under Rule 151 (c) read with Rule 160 of the Central Excise Rules on the. ground that the said tobacco had been illegally removed by the petitioner from the said warehouse. The Collector also ordered confiscation of the salvaged tobacco contained in 106 bags by invoking the power conferred by Rule 32 of the Central Excise Rules. The petitioner -firm was however Riven an option to redeem the said quantity of tobacco on payment of a fine of Rs 1,000/ - in lieu of confiscation and warehouse the same in their warehouse or clear the goods therefrom on payment of duty. Besides the above the Collector imposed on the petitioner a penalty of Rs - 500/ - uader Rule 32(2) for illegal transport of 106 bags of tobacco and also a further penalty of Rs 2,000/ -under Rule 151(c) for illicit removal of 570 bags of biri tobacco from the petitioner's warehouse at Cochin.