GANESH MATCH WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) This Writ appeal is directed against the judgment of Mohan, J. dismissing writ petition No. 4122 of 1975 filed by the appellant for the issue of a writ of certiorari to quash the older of the first respondent dated 20-1-1975.

(2.) The appellant is a manufacturer of safety matches. There was an inspection of his factory on 31-7-1969 and 13-8-1969 when some discrepancies were found in the accounts. One such discrepancy related to the account of Chlorate and use of raw materials such as wax and splints. Another discrepancy related to the consumption of veneers which was higher than the normal consumption during the months ot January, February, March and April, 1969. From the accounts it was noticed that the appellant had produced 422 gross of matches with 459 Kgs. of chlorate allotted to him for the manufacture of matches. The factory was not working during the months of May to December, 1969. Since the appellant did not satisfactorily account for the use of more chlorate and the higher consumption of veneers, he was called upon to show cause under Rule 173-E of the Central Excise Rules, 1944. After getting his explanation and considering the same, the Assistant Collector of Central Excise, Sivakasi exercising his powers under Rule 173-G levied a duty of Rs. 19, 935.00 as also penalty of Rs. 100.00. Against this order, an appeal was preferred to the Appellate Collector of Central Excise but without success. Thereafter, the appellant filed a revision before the Government of India which also failed. The appellant then filed the above writ petition seeking a writ of certiorari to quash the order dated 20-2-1975 of the Government of India which in turn affirmed the orders of the Appellate Collector of Central Excise as also the Assistant Collector of Central Excise, Sivakasi, the original authority.

(3.) In the writ petition the only contention advanced by the appellant was that the inspection having taken place on 31-7-1969 and 13-8-1969, the demand for duty and the levy of penalty dated 21-9-1972 issued under Rule 173-E of the Central Excise Rules, 1944 was time-barred in view of the decision of the Supreme Court inPublic Prosecutor, Madrasv. R. Raju- 1978E.L.T.(J 410). The said writ petition was resisted by the respondents herein on the ground that under Rule 173-E of the Central Excise Rules, 1944 no time limit is fixed and that for violation of Rule 173-E action could be taken under Rule 173-G and that on the facts of the case the said decision of the Supreme Court has no application.