(1.) BY this petition under article 226 of the Constitution the petitioner questions legality and propriety of certain show cause notices and orders passed under the Central Excises and Salt Act, 1944 (for short 'the Act' ).
(2.) BRIEFLY stated the facts leading to this petition are as follows : - The petitioners are a company registered under the Companies Act, 1956 having one of its factories at Wagale Industrial Estate, Thane. The petitioners manufacture wireless receiving sets, tape recorders and stereo systems. The said goods are variously classifiable under item 37a, 37aa, 33f and 33e of the erstwhile first schedule, to the Act. The said goods are sold by the petitioners principally to certain whole-sale dealers mentioned in para 3 of the petition.
(3.) IN the light of the judgment in Union of INdia Vs. Bombay Tyre INternational (Supra) the petitioners filed 16 refund claims for various periods claiming refund of the excise duty illegally levied and collected on the basis that the price at which the said whole-sale dealers sold the goods to the customers form the basis of assessable value under section 4 of the Act. By his order dated 1st October 1984 the Assistant Collector of Central Excise, Thane 1 division, sanctioned refund claim to the extent of Rs. 65,84,906. 00 and after adjusting an amount of Rs. 41,40,500. 00 as constituting excise duty on post manufactured expenses, issued a cheque for Rs. 21,19,877. 47 and also permitted the petitioners to take credit of Rs. 3,23,792. 69 in their profit and loss account.