ELECTRICAL AND HANDWARE INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioners are small scale undertakings engaged in fabrication of various Line Materials such as cross arms, etc. They have challenged Ext. P3 order of the Assistant Commissioner informing the petitioners that they must clear the goods only after observing Central Excise formalities as per the Central Excise Act and Rules and, therefore, goods shall not be cleared on execution of bond.

(2.) The case of the petitioners is that their factory premises as well as the residence of the partners of the units were inspected on 31.10.1996 by the Central Excise Department staff headed by the Superintendent of Central Excise. The factory once again was inspected on 1.11.1996 and after ascertaining the total quantity of cross arms that were lying in stock, issued a detention order in respect of the same and directed the petitioners not to remove, part with or otherwise deal with the detained goods without prior permission from the Department Thereafter, the petitioner approached the respondent and sought for permission to clear the goods provisionally after executing a bond for the alleged duty liability. The said request was turned down and hence the above Original Petitions were filed.

(3.) According to learned counsel for the petitioners the demand of the Assistant Commissioner to pay duty is arbitrary and illegal and violative of their fundamental rights of an assessee under Art.14 of the Constitution of India. According to him, the Central Excise Department is not entitled to demand duty without adjudication and in any event they must be allowed to clear the goods on execution of a bond as it had been done in the case of the petitioner in OP No. 617 of 1997 as per the directions of this Court in OP No. 20386 of 1996. Learned Counsel for the petitioners also submitted that the cross arms are not excisable in so far as the fabrication work done in respect of the cross arms cannot be said to be one that tantamounts to manufacture.