VIJAY SYNTHETIC PRINTS LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) By this petition under Article 226 of the Constitution of India, the petitioners challenge the demand for interest under Section 11AA of the Central Excise Act, 1944 as the provision then stood, and seek a consequential relief of quashing and setting aside the order of the 2nd and the 3rd respondents dated 25th April, 1997 and 19th March, 1999.

(2.) It is common ground that the petitioner No. 1 is a Company incorporated under the provisions of the Companies Act, 1956. The petitioners challenge an order of attachment dated 25th April, 1997 and a further order dated 19th March, 1999 which orders are passed by respondent nos. 2 and 3, respectively, to this writ petition.

(3.) The petitioners do not dispute that they had filed a writ petition in the High Court at Delhi challenging the levying of additional duty of excise on fabrics under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. It was submitted that the goods (fabrics) were liable to be exempted from payment of this duty under a Notification No. 78/82, dated 28th February, 1982. On such a writ petition, which was filed on 27th July, 1982, on 9th August, 1982, an interim order was passed by the Delhi High Court staying the recovery and duty. There was a conditional interim order, but we are not concerned with the same inasmuch as, eventually this writ petition was dismissed by that High Court on 25th May, 1995. The petitioners were not aware of this order and they sought information from the Range Superintendent, Central Excise. The Range Superintendent addressed to them a communication dated 16th October, 1995 and forwarded a copy of the said order. The petitioners were called upon to pay the additional duty of excise amounting to Rs. 1,67,86,661/-. The petitioners state that after receipt of the letter dated 16th October, 1995, the petitioners had paid the additional duty of excise amounting to Rs. 2,31,06,902/-. The particulars of such payment were also disclosed with the letter dated 7th November, 1995. The petitioners state that there was no show cause notice for recovery of this duty prior to 3rd April, 1992. The 10 notices that are issued and referred to at page 6 of the writ petition, internal paragraph (f), pertain to the period commencing from 1st September, 1991 to 15th June, 1995. We are not concerned with this part for the simple reason that by an order, copy of which is at Exhibit I, dated 4th September, 1997 the petitioners were directed to pay the amounts in respect of the 10 show cause notices. The demand for duty was confirmed, however, that order records that the petitioners have paid the amount and they were directed only to pay penalty of Rs. 10,000/-. Even that penalty has been paid.