LUPIN LABORATORIES LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) SHRI A. M. Mathur, Senior Advocate, with Shri C. B. Patne, for the petitioner and Shri B. G. Neema, Central Govt. Advocate, for the respondents, were heard on admission and on application for ad interim relief.

(2.) THE present petition challenges order dated 10-6-1991 disallowing MODVAT credit to the petitioner to the extent of Rs. 79,38,597. 50 and imposing penalty of Rs. 5 lakhs in respect of 'cephalazin' cleared by the petitioner during the period January, 1989 to August, 1990 as also withdrawing the facility of taking MODVAT with immediate effect.

(3.) SHRI Mathur submitted that all the necessary facts for availing MODVAT credit in terms of Rule 57a read alongwith Rules 57f, 57g, of Central Excise Rules, 1944 and other relevant rules on the subject were disclosed to the department and, therefore, the Respondent No. 2 was in error in applying the 5 years time period for raising demand against the petition under proviso to Rule 57 (I) of the Central Excise Rules, 1944. In support of his contention Shri Mathur relied on M/s. Jayant Vitamins Ltd. v. Union of India - 1991 (53) E. L. T. 278; Collector of Central Excise v. Chembhar Drugs and Liniments - 1989 (40) E. L. T. 276 (SC)" and Padmini Products v. Collector of Central Excise - 1989 (43) E. L. T. 195 (SC) and urged for admission of the petition and confirmation of ex parte ad interim stay granted vide order dated 13-7-1991.