KINETIC HONDA MOTOR LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS order shall also dispose of M. P. Nos. 1824/91 and 1825/91 as similar questions of law and facts are involved in all these petitions.

(2.) BY this petition filed Articles 226, 227 and 265 of the Constitution of India, the petitioners seek quashment of show cause notice (Annx.- F) issued on 30-9-1991 by respondent No. 2, the Collector of Central Excise, under Section 11a of the Central Excises and Salt Act, 1944 (for short, 'the Act'), read with Rule 57-I of the Central Excise Rules, 1944 (for short, 'the Rules' ).

(3.) THE petitioner No. 1 is a Company duly incorporated under the Companies Act, 1956. Petitioner No. 2 is a shareholder of the Company. The petitioners have a factory at Pithampur in M. P. where they manufacture motor scooters with engine capacity of 90 cc and mopeds with engine capacity of 50 cc or less. The petitioners while seeking Modvat credit filed declaration forms with respondent No. 3 declaring two wheeled motor vehicles as their final products without distinguishing between scooters and mopeds. Total amount for which the credit was availed of during the period from Oct. 1987 to 31st March, 1991 amounted to Rs. 2. 57 crores.