LAWS(ALL)-1994-12-13

KANPUR CIGARETTES P LTD Vs. CEGAT

Decided On December 23, 1994
KANPUR CIGARETTES (P) LTD. Appellant
V/S
CEGAT Respondents

JUDGEMENT

(1.) This petition under Article 226 of the Constitution of India challenges the orders dated 19th August, 1993, and 27th January, 1994, passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi, under the proviso to Section 35F of the Central Excises and Salt Act, 1944.

(2.) Counter and rejoinder affidavite have been exchanged and the petition has been finally heard at the admission stage itself.

(3.) M/s. GTC Industries Limited, petitioner No. 2, is a manufacturer of cigarettes. It has its own manufacturing facilities and also gets the cigarettes manufactured by other manufacturers, including M/s. Kanpur Cigarettes (P) Limited, petitioner No.l. The Excise authorities claimed to have discovered that they were avoiding excise duty and, therefore, the Collector, Central Excise, Kanpur, passed an order levying a sum of Rs. 1,01,20,221/- on the petitioners as excise duty and additional excise duty. This amount was levied on the two petitioners jointly. In addition, both were ordered to pay penalties of Rs. 60,000/- each. Orders were passed levying various amounts of excise duty and penalties by the Collectors of Central Excise, Bombay, Baroda, Hyderabad and Chandigarh on M/s. GTC Industries Limited, M/s. Sri Chandra Tobacco Limited, M/s. J & K Cigarettes Limited, M/s. Suvarna Filter and Tobacco Products Limited and M/s. Universal Tobacco (P) Limited.