B R SULE Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule returnable forthwith. Shri Mehta waives service on behalf of the respondents. Heard counsel.

(2.) By this petition filed under Article 226 of the Constitution of India, the petitioners are challenging the validity of show cause notice dated September 14, 1989 and the copy of which is annexed as Ex. C' to the petition. The grievance of the petitioners is that the show cause notice recites that M/s. Mahindra and Mahindra Limited has fabricated certain items of iron and steel which are classifiable under Chapter heading 7326.90 and in respect of which benefit of exemption under Notification No. 217/86 dated April 2, 1986 is not available. The show cause notice claims that the assessee has contravened the provisions of Central Excise Rules and is liable for payment of duty and penalty. As regards the petitioners, the show cause notice recites that they have contravened the provisions of Rule 209A of the Rules inasmuch as they concerned themselves or deal with the goods which they knew or had reason to believe were liable for confiscation under the Act and the Rules thereunder and which are punishable as the offence.

(3.) Shri Setalwad, learned counsel appearing on behalf of the petitioners, submits that the petitioners can by no stretch of imagination be said to be concerned with the goods or knowledge can be attributed to them that the duty was not paid by claiming exemption under the notification. The learned counsel urged that petitioners Nos. 1, 2 and