SWATHY CHEMICALS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Order of the Court is as follows :- THE petitioner in all the petitions is one and the same and it is accused No. 1 in EOCC Nos. 167 to 169 of 1996 on the file of Additional Chief Metropolitan Magistrate for Economic Offence Cases, Egmore, Madras and it seeks to quash the proceedings in the cases in so far as it is concerned.

(2.) THE point for determination in all the petitions is one and the same and hence they are disposed of by common order.

(3.) BASED on the adjudication order of the Collector of Central Excise, dated 29-8-1991, the prosecution against the petitioner has been initiated and when it is pending, CEGAT in its order, dated 9-7-1999, has rendered the following findings. "(i)The petitioner herein had declared that they were importing zinc ash on which they were even paying countervailing duty in addition to the basic Customs Import Duty and they have declared the detailed process of manufacture and there was no suppression as alleged.(ii)They had filed classification lists, which were approved by the authorities and therefore there was no question of mis-declaration with intent to evade duty. (iii)The petitioner herein had claimed exemption by explaining in their letter as well as in the classification lists the grounds on which they claimed exemptions and, therefore, as held by the Supreme Court in the decision inNorthern Plastics Ltd., reported in, such claim to exemption was a matter of belief of the assessee and would not amount to mis-declaration. (iv)The petitioner herein had followed all the procedures under the Central Excise Act and Rules, including clearance of goods on the prescribed clearance documents. There were no malafides on the part of the petitioner." The department does not appear to have challenged the decision of the Tribunal and that has become final.