SHAMKEN COTSYN LIMITED Vs. COMMISSIONER APPEALS C EX

JUDGEMENT

(1.) Heard Sri Bharat Ji Agrawal, Senior Advocate along with Piyush Agrawal, learned Counsel for the petitioner and Sri G.R. Gupta, learned State Counsel for Commissioner, Central Excise/Revenue.

(2.) In this writ petition order dated 28th June, 2002 passed by Commissioner, Central Excise, Ghaziabad directing the dispensation for the pre-deposit of Rs. 23,00,000 has been challenged and further direction has been sought to decide the petitioner's appeal filed on 12th April, 2002 without insisting for pre-deposit of any amount expeditiously.

(3.) Brief facts necessary for adjudication in the present writ petition are that the petitioner is a public limited Company engaged in the manufacture of processed cotton and man-made fabrics on job work falling under Chapter 52 and Chapter 55 of the Schedule to the Central Excise Tariff Act. The petitioner is not engaged in any business of purchase and sale of excisable goods or fabrics. The Government of India has presented excise duty known as compounded levy, at the rate of Rs. 1,50,000 regardless of the job work done by the machines. Rule 96ZQ(3), of the Central Excise Rules, 1944 provided for levy of compounded duty which has to be paid by 5th of every month in advance. The Rule 96ZQ(5) provides as below :