JINDAL STRIPS LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IN these batch of writ petitions, the Petitioners have challenged the validity of Sections 11ab and 11ac of the Central Excise Act, 1944 on the anvil of Arts. 14, 19 and 20 of the Constitution of India; therefore they are disposed of by this common order, For convenient disposal of all these petitions, facts given in W. P. No. 481 of 1997 are taken into consideration.

(2.) THE petitioner is a manufacturer of sponge iron. He was served with show cause notice by the respondent No. 3 Commissioner of Central Excise, Raipur dated 3rd December, 1995 and a corrigendum dated 26th November, 1996; therefore, he has rushed to challenge the validity of provisions of Sections 11ab and 11ac of the Act of 1944 on the anvil of Arts. 14, 19 and 20 of the Constitution and has also sought writ of certiorari quashing the proceedings initiated by the respondent No. 3.

(3.) SECTIONS 11ab and 11ac were introduced by Finance (No. 2) Act, 1996 (33 of 1996) with effect from 29th September, 1996 in the Central Excise Act, 1944. Section 11ab relates to interest on delayed payment of duty and Section 11ac relates to penalty for levy or non-levy of duty in certain cases.