VADILAL GASES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The short question which arises for consideration in this writ petition is that if the applications filed by the petitioners under section 32E(1) of the Central Excise Act, 1944 are dismissed for non-deposit of additional amount of excise duty along with interest due, as required by clause (d) of proviso to section 32E(1) and proceedings are abated by the Customs and Central Excise Commission, thereafter, whether a second application filed by the petitioners under section 32E(1), after payment of additional excise duty along with interest is maintainable?

(2.) The brief facts are that the petitioner no.1, Vadilal Gases Limited (for short the 'VGL'), is a Company engaged in the business of manufacturing industrial gases like argon gas, hydrogen gas, nitrogen gas and also various mixtures of gases, which were excisable goods falling under Chapter 28 of the 1st schedule of the Central Excise Tariff Act, 1985. VGL had been selling and supplying in tankers gases manufactured by them, after payment of excise duty, to the petitioner no.2, Vadilal Chemicals Limited. The Vadilal Chemicals Limited filled these gases in cylinders and affixed labels on the cylinders which mentioned the details like grade of gas, composition, purity of gas, etc.

(3.) The Director General of Central Excise (Intelligence) (for short 'DGCEI') conducted inquiries with regard to the transactions of VGL and Vadilal Chemicals Limited, and thereafter, the Joint Director, DGCEI issued a show cause notice F.No.DGCEI/AZU/36-52/2011-12 dated 08.06.2011 demanding Central Excise Duty of Rs.23,76,942/- from VGL, on the ground that the processes of purification, grading and labeling carried out by VGL on gases like commercial hydrogen gas constituted manufacture attracting levy of excise duty. Proposals for recovering interest from VGL and also for imposing penalties on all three petitioners were made in the show cause notice.