SYNTHETICS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS is a petition under Article 226/227 of Constitution of India.

(2.) THE facts lie in a narrow compass. The petitioner is the company incorporated under the Companies Act, 1956. It uses Mono Ethylene Glycol (MEG) as a raw material i. e. input for the purpose of manufacture of polyester yarn. The aforesaid MEG was excisable under the old tariff item No. 68 vide Notification No. 201/79 dated 4. 6. 1979. The Government of India allowed the set off to be given on the ground of duty paid by the manufacturer on raw material subject to excise duty, under old tariff item No. 68 if that raw material was used in the manufacture of final product. (Annexure-A ). The petitioner thus, became entitled to claim set off of duty. The petitioner complied with the requisite conditions as laid down in the Notification and submitted monthly return in Form RT 12. The Respondent No. 2 (Additional Collector) however, issued the show-cause notice dated 10/12. 4. 1989 (Annexure D) to the petitioner, to show cause as to why the duty be not demanded/recovered under Section 11-A of the Central Excises and Salt Act, 1944 and why a penalty should not be imposed under Rule 173q of the Central Excise Rules, 1944. The petitioner submitted the preliminary objection on 22. 5. 1989 (Annexure E) contending that the issuance of notice was barred by time imprimis and as such, the proposed action was without jurisdiction. The authority, however insisted upon reply as is clear by letter dated, 11. 7. 1989 (Annexure F ). Aggrieved, the petitioner has filed this writ petition.

(3.) 1 have heard both sides.