(1.) By this petition under Article 226 of the Constitution, petitioner M/s. Modipon Ltd. which is a public limited company carrying on the business of manufacturing Nylon-6 filament yarn in its factory located at Modinagar, seeks an order, direction or writ in the nature of Certiorari quashing the order of the Collector of Central Excise, dated 30-12-82 (Annexure M) and the show cause notice dated 26-6-76 (Annexure B) and the proceedings emanating therefrom.
(2.) The short facts leading to this petition are as under:
(3.) Petitioners manufacture Nylon Yarn falling under Central Excise Tariff Item No. 18. It is averred that during the period commencing 1-1-68 and ending 28-2-75, petitioners utilised certain raw materials as entered and recorded by them in their records and returns. The respondents found that the petitioners did not maintain proper records and entered incorrect figures of production in the statutory records consequently a show cause notice dated 26-6-76 was issued to the petitioners to show cause as to why on 18,37,976 Kgs. nylon yarn alleged to have been manufactured and cleared surreptitiously in a manner other than as provided under the Central Excise Rules, 1944 (for short the Rules) excise duty should not be demanded under Rule 9(2) and 173-Q of the Rules at the rates applicable to the lowest denier attracting the highest rate of duty. The amount of duty thus demanded works out to Rs. 6,25,70,000.50 (Rupees six crores, twenty five lacs, seventy thousand and paise fifty only) and further as to why a penalty should not be imposed on them under Rules 9(2), 52A and 173Q of the Rules and also as to why the land, building, plant and machinery used in the manufacture and production of nylon yarn should not be confiscated under Rule 173Q of the Rules. Copies of all documents which were proposed to be taken into account in the matter were supplied to the petitioner. Instead of filing reply to the show cause notice, petitioners sought repeated extensions for submission of reply and demanded informations and documents etc. which had no relevance with the issues involved in the show cause notice.