CAMBAY CHEM LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition has been preferred challenging the order of attachment dated 9/3/2009 for failure on part of the petitioner to make payment of Rs. 24,29,387/- through the P. L. Account of the petitioner. Upon issuance of notice, respondent authorities have put in appearance and affidavit-in-reply dated 31/3/2009 has been tendered. Considering the scope of controversy between the parties, the petition is taken up for final hearing and disposal today

(2.) RULE. Learned advocate for the respondent authorities is directed to waive service of rule.

(3.) THE facts are not in dispute. Petitioner had made payment of Central Excise Duty with interest for the month of September 2006 on 3/1/2007, instead of making payment in the month of October or November 2006. As a consequence, it appears that respondent authorities are of the opinion that the payment of Excise Duty by utilising CENVAT credit for the months of November and December 2006 is not in consonance with the relevant rules. This fact came to light only on basis of audit inspection in the month of April 2008. Thereafter, petitioner was called upon by virtue of various communications commencing from 30/4/2008 to make payment of duty amount of Rs. 23,95,653/- + education cess of Rs. 33,734/- in cash / from P. L. Account. However, correspondence ensued between the parties and ultimately resulted in the impugned order of attachment dated 9/3/2009.