STEEL INGOTS PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE order in this case will also govern the disposal of Miscellaneous Petitions Nos. 329, 458 and 958, all of 1987.

(2.) BY these petitions under Articles 226 and 227 of the Constitution of India, the petitioners have prayed for quashing of orders passed by the Superintendent, Central Excise, under Rule 57-I of the Central Excise Rules, 1944 (hereinafter referred to as "the Rules") holding that as the credit of duty paid on inputs, as specified in the orders, was wrongly taken by the petitioners, the credit so taken was being disallowed. By these orders, the petitioners were directed to adjust the credit account immediately, as directed in those orders. Aggrieved by those orders, the petitioners have filed these petitions.

(3.) A number of points were urged in the petitions but having heard learned Counsel for the parties, we have come to the conclusion that the petitions deserve to be allowed on the short ground that before taking action under Rule 57-I of the Rules, the Superintendent, Central Excise, has not given any opportunity to the petitioners to show cause why action as contemplated by the said rule be not taken. The relevant provisions of Rule 57-I of the Rules read as follows: