COLOUR-CHEM LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioner company is inter alia manufacturing Synthetic Tanning Agents and other various chemical products. The Company had imported certain material in the year 1984. The superintendent of Central Excise issued show causes notice dated October 22, 1984 in accordance with Rule 9b of the Central Excise Rules. The Company appeared before the assistant Collector of Central Excise and the hearing was concluded in 1985, but the Assistant collector did not pass any order for over four years. On September 12, 1989 the Superintendent of Central Excise directed the Company to appear for hearing before the Additional Collector of central Excise claiming that in view of the amendment to Section 11a of the Central Excise Act all proceedings pending on December 27, 1985 with the Assistant Collector stand transferred to additional Collector. This notice was open the basis that the earlier show causes notice heard by the Assistant Collector was both under Rule 9b and under Section 11a.

(2.) SHRI Parekh, learned counsel appearing on behalf of the petitioners, submitted that the mere mention of Section 11a would not make any difference because the notice did not contain any allegation about any fraud, collusion or wilful misstatement or suppression of facts or contravention of any of the provisions of the Excise Act or Rules. The only dispute was under which Tariff Item duty was payable. Shri Parekh points out that the Assistant Collector had taken samples of the goods imported and had called for the reports and the two reports were in favour of the petitioner Company. There is considerable merit in the submission of the learned counsel. The mere mention of section 11aa does not confer jurisdiction upon the Superintendent of Central Excise to transfer the proceedings to Additional Collector of Central Excise. The plain reading of Show cause notice makes it clear that the show cause notice is rally one under Rule 9b of Central Excise rules. It is therefore clear that there is no difficulty in Assistant Collector disposing of the show cause notice.

(3.) ACCORDINGLY, petition succeeds and rule is made absolute and it is directed that the show cause notice shall be disposed of by the Assistant Collector in accordance with provisions of rule 9b of Central Excise Rules. There will be no order as to costs.