CHIMANPAL DESAIBHAI PATEL Vs. B K GARG

JUDGEMENT

(1.) The impugned orders which are the subject matter of this Special Civil Application can easily be set aside on one ground, namely for violation of the principles of natural justice.

(2.) It is unnecessary to dilate at any length upon the facts of this case, which we propose to set forth only to the extent that is essential for the purpose of this judgment.

(3.) The petitioner is a tobacco merchant having his private bonded warehouse at Malad. He holds a Central Excise licence in Form L-5 for storing non-duty-paid tobacco. On 6th September 1965, the Deputy Superintendent, Central Excise attached to the preventive Branch visited the Petitioner's warehouse and seized 194 bags from that warehouse on the ground that the goods in the bags did not tally with the goods described in the register. The necessary panchanama was made of the seizure of the goods which were assessed by the panchas at Rs. 1,500. On 4th February, 1966, a show cause notice was issued to the petitioner, wherein breach of Rule 151 (c) and (d) of the Central Excise Rules, 1944 was alleged, and the petitioner was asked to show cause why the tobacco "privately removed should not be demanded under Rule 160 of the Central Excise Rules, 1944". The petitioner sent his reply to that show cause notice. On 30th November, 1966, the Assistant Collector of Central Excise, namely, the 1st respondent, passed an order holding the petitioner guilty of committing a breach of Rule 151 (c) and (d) of the Central Excise Rules and imposed a certain penalty and ordered confiscation of 194 bags giving an option to the petitioner of redeeming the goods on payment of a fine of Rs. 400. The 1st respondent also demanded duty on 6562.20 kilograms of tobacco. Against that order, on 4th March, 1967, the petitioner preferred an appeal to the Collector of Central Excise, namely, the 2nd respondent. That appeal was disallowed on 17th October, 1968 by the 2nd respondent. Against that order, on 19th April, 1969, the petitioner preferred a revision application to the Union of India, namely, the 3rd respondent. On 9th December, 1970, the 3rd respondent modified the order, inasmuch as the quantity of tobacco on which duty was demanded was reduced from 6562.20 kgs. to 4540 kgs. the fine in lieu of redemption was reduced from Rs. 400/- to Rs. 100/- and the penalty was reduced from Rs. 250/- to Rs. 50/-. Except for these modifications, the revision application was rejected.