BUCKEYE MACHINES PRIVATE LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) By means of this application under Sec. 482, Cr. P.C. the applicants seek quashing of proceedings of Criminal Cases No. 829 of 1998 and 830 of 1988, Union of India Vs. M/s. Buckeye Machines Private Limited , pending in the Court of Special Chief Judicial Magistrate Kanpur.

(2.) Heard Shri Arun Kumar Singh holding brief of Shri Vipin Sinha, learned Counsel for the applicants, learned A.G.A. and have perused the record.

(3.) The applicant No. 1 M/s. Buckeye Machines Private Limited is a company incorporated under the Companies Act, 1956. Applicant No. 2 was the Executive Director and applicant No. 4 was the Manager of the Company. The applicant No. 3 was Honorary Member-cum-Chairman of the Company. The applicant No. 1 was carrying on business of manufacturing different types of machines as well as spare parts including punches known as extrusion punches. The machines and extrusion punches fell under the Tariff Item 68 of the First Schedule of the Companies Act. During the year 1981-82 and 1982-83 classification list in respect of machines and extrusion punches under Tariff Item 68 were filed. The extrusion punches being covered under Tariff Item 68 no excise duty was payable. On 26.2.1983 Preventive Officer of Central Excise Department, Aligarh inspected the factory premises of the company and issued a show cause notice demanding excise duty of Rs. 40,429.78. The Deputy Collector (Technical), Central Excise, Kanpur vide order dated 30.4.1984 held that the cans manufacturing machine in which the extrusion punches are designed to be fitted are machine tools liable to excise duty under Tariff Item 50-A (iii). An appeal was filed against the said order before the Collector (Appeals), Central Excise, New Delhi. The appellate authority dismissed the appeal vide order dated 13.7.1988. The applicants preferred an appeal before the Customs, Excise and Gold Control) Appellate Tribunal, New Delhi against the order dated 13.7.1988. The appeal was allowed by an order dated 3.1.1997 holding that extrusion punches are classifiable under Tariff Item 68 of the Excise Tariff. The applicants refund claim for Rs. 60,934.33 deposited with reference to the order passed by Deputy Collector (Technical) Central Excise, Kanpur was allowed by an order dated 21.7.1997 passed by the Assistant Commissioner Central Excise.