RAHAT INDUSTRIES Vs. COMMISSIONER CENTRAL EXCISE

JUDGEMENT

(1.) We have heard Sri V.K. Singh, Senior Advocate for petitioners and Sri Shambhu Chopra, learned Standing Counsel.

(2.) The petitioners are registered manufacturer of Ayurvedic medicines which are excisable items. A search and seizure was conducted on 20-11-1997 during which certain documents and electronic articles were seized which included certain floppies and a hard disc of a computer from the premises of the petitioners.

(3.) On the basis of the aforesaid search and seizure operation a notice dated 5-5-1999 (Annexure-6 to the writ petition) was issued to the petitioners to show cause within 30 days of its receipt as to why Central Excise Duty amounting to Rs. 11,46,479.78 be not realised and recovered from them on account of illicit sale of Noorani Tel manufactured by them; why penalty should not be imposed upon them under the Rules and the provisions of the Central Excise Act; and why the interest on the aforesaid excise duty be not realised under Section 11-AB of the Act.