CASTROL INDIA LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) IN this petition, the petitioners have challenged the show cause notice dated 28th September, 2001 issued by the Deputy Commissioner of Central Excise, Panvel Division, wherein the petitioners were called upon to show cause as to why penal action be not taken against them for availing CENVAT Credit of Rs. 21,74,227. 00 in contravention of Rule 57-AF (2) of the Central Excise Rules, 1944 (Excise Rules for short ). The petitioners had availed the CENVAT Credit for the aforesaid amount pursuant to the order passed by the Deputy Commissioner, Central Excise, Division E, Mumbai on 22nd September, 2000 and, therefore, it is the contention of the petitioners that without challenging the order of the Deputy Commissioner of Central Excise, Mumbai dated 22nd September, 2000 it is not open to initiate the penal proceedings against the petitioners and therefore, the impugned show cause notice is liable to be quashed and set aside.

(2.) ORDINARILY, we would not have taken up the onerous responsibility of adjudicating the show cause notice on ourself, but in view of the facts of this case where utilisation of the credit is pursuant to an order dated 22nd September, 2000 and that order has become final, we are of the opinion that the question of taking any penal action against the petitioners does not arise at all and hence instead of permitting adjudication we have decided to hear the matter on merits itself.

(3.) THE facts having bearing to the subject matter of the present petition are as follows: the first petitioner company inter alia manufactures and sells lubricating oil. The petitioners had a godown at Mazgaon wherein the petitioners received manufactured lubricating oil in bulk from various manufacturing units of petitioner No. 1 company situated at Patalganga, Wadala and Silvassa. The petitioner repacked the said oil into various packs ranging from 50 liters too 250 ml. The repacked goods were sold from the said godown by the petitioners to various locations and across the country.