PANAMA CHEMICAL WORKS Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order shall govern the disposal of M.P. No. 1297 of 89 (Panama Chemical Works and Manoj Kumar) and M.P. No. 682 of 1991 (Panjon Pvt. Ltd. and Anr. v. Union of India and 3 Ors.).

(2.) M .P. No. 1297 of 1989 has been filed by the petitioners against the respondents under Articles 226 and 227 of the Constitution of India seeking the relief of quashing the show cause notice Annexure -P19 being without jurisdiction and barred by limitation hence being illegal and biased. During the pendency of this petition the petitioners in M.P. No. 682 of 1991 started the manufacture of the same product which was the subject matter of the earlier petition. They, therefore, submitted a classification list for suitable classification of the Ayurvedic product 'SWAD' for treating it as an Ayurvedic preparation, whereupon the respondent No. 4, Superintendent, Central Excise, issued a show cause notice dated 8 -1 -1991 to the petitioner Company that why the product SWAD be not classified as confectionery instead of Ayurvedic medicine. Thereafter a corrigendum was also issued by the Superintendent, Central Excise. Then the Assistant Collector, Central Excise, Indore issued a notice of show cause to the petitioner Company as to why the product be not classified as a confectionery. The petitioner Company requested the Authorities to extend the time for submission of reply in view of the pendency of a similar petition on similar grounds before this Court. But the Assistant Collector refused to stay the proceedings. Hence a writ petition was filed by the petitioner seeking the issuance of a writ restraining the Assistant Collector, Central Excise and the Superintendent, Central Excise, Indore from taking any further action on the show cause notices Annexures P -6, P -7 and P -8 being illegal and without jurisdiction.

(3.) HOWEVER , the enquiries continued and a query about the glucose sugar was made by Annexure P -10 which was replied by Annexure P -11. Again, vide Annexure P -12 the quantity of sugar was asked to which letter Annexure P -13 was sent by the petitioners. Thereafter the production of sugar syrup and its value was asked for by letter Annexure P -14. The petitioner filed reply to the said letter, vide Annexure P -15. Thereafter the Inspector of the Central Excise, Range 5, took the sugar syrup and the SWAD tablet for test on 26 -12 -1988 and 6 -2 -1989, respectively vide Annexures P -16 and P -17. Other documents were also sought by the Inspector, whereupon all the necessary documents sought were supplied. As such, all through there has been no mis -statement or suppression of any material facts in relation to the process and manufacture of SWAD by the petitioner.