PARLE INTERNATIONAL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, by filing this petition has prayed for issuance of writ of certiorari or any other appropriate writ, order or direction for quashing and setting aside show cause notices at Annexure 'N', 'O' and 'P'.

(2.) The petitioner, engaged in the manufacture of non-alchoholic beverage base, was subjected to the excise duty under heading 33.02 of Central Excise Tariff for a period from 1.3.1989 to November 1993. The petitioner was paying excise duty for which there is no dispute. It is also clear that the duty paid was accepted by the Revenue. However, show cause notice was issued on 30.3.1994 calling upon the petitioner to pay the differential amount of central excise duty of Rs.2,68,29,433-15 as basic excise duty and Rs.18,61,395-53 as special excise duty totalling to Rs.2,86,90,828-68 leviable on the clearance of non-alcoholic beverage base units during the period mentioned earlier under provisions contained in section 11.A of the Central Excise & Salt 1944. The petitioner was also called upon to pay the amount of Rs.24,49,262-00 as basic excise duty being the differential amount of central excise duty. The petitioner was also called upon to show cause as to why penalty under Rule 173.Q(1) should not be imposed. From the text of the notices, it appears that the allegation was that the petitioner contravened the provisions of rule 9(1), 173.C, 173.F, 173.G and 226 of the Central Excise Rules 1944 (hereinafter referred to as the Rules), the details of which are mentioned in paragraph 23 of the show cause notice, (at page 49, running page 294) as under:-

(3.) It appears that M/s. Parle International Ltd., Ahmedabad have contravened the provisions of Rule 9(1), 173.C, 173F, 173G and 226 of the 'Said Rules" in as much as :-