VIDUSHI WIRES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition is directed against the order dated 1st October, 2002 passed by the second respondent (Exhibit-C) forfeiting the facility of payment of duty allowed on fortnightly basis under Rule 8 (4) of the Central Excise Rules, 2001 (the 'rule' for short) framed in exercise of the powers conferred under Section 37 of the claimed under the provisions of the Central Excise Act, 1944 (the 'act' for short), FACTS

(2.) THE petitioner is a private limited Company engaged in the business of manufacturing steel wire, having its factory at Anandnagar, M. I. D. C. , Ambernath (Maharashtra ). The product manufactured by the petitioners attracts payment of excise duty under the provisions of the Act. The petitioners were enjoying facility of payment of duty on fortnightly basis under Rule 8 (4) of the Rules. The relevant Rule 8 reads as under :-

(3.) THE above provisions lays down that if the assessee commits three defaults in succession or otherwise within a period of one financial year in the matter of payment of duty, then only the assessee shall forfeit the facility to pay dues in instalments under this Rule for a period of 2 months starting from the date of communication of the order passed by the Assistant Commissioner of Central Excise or the Deputy Commissioner of the Central Excise, as the case may be in this regard or till such date on which all dues are paid, whichever is. later, and during this period, the assessee shall be required to pay excise duty for each consignment by debit to the account and in the event of any failure, it shall be deemed that such goods have been cleared without payment of duty and the consequences and penalties as provided in these Rules shall follow.