UNIWORTH TEXTILES LTD Vs. JOINT DEVELOPMENT COMMISSIONER

JUDGEMENT

(1.) The Subject: The proceeding under the Excise Act was initiated under Section HA against the petitioner company having its office at Calcutta in respect of certain excise duty payable on account of certain transactions carried out at Raipur and Nagpur Units of the Company.

(2.) The writ petitioner had contested the said proceeding, which resulted in demand. Against the said demand, the petitioner had preferred an appeal before the CEGAT, Bombay. Ultimately, the said proceeding before the CEGAT, Bombay was transferred to CEGAT at Calcutta. The learned Cousnsel for the petitioners contended that the demand was raised not on the units but on the company, which had its office at Calcutta. He further contended that different units of the petitioners are spread over all over India. But the excise demand is raised on the company. Therefore, he contended that by reason of the transfer of the proceeding to CEGAT at Calcutta in respect of the petitioners company, which has its office at Calcutta, this Court has jurisdiction to entertain this writ petition, even on the ground of the question of territorial jurisdiction.

(3.) Mr. Shiv Das Banerjee, learned Counsel appearing on behalf of the respondents, on the other hand, pointed out that the entire cause of action arose outside the territorial jurisdiction of this Court. The cause of action that is being alleged is against the action of the authority, who has its office at Western Region of the country, over which this Court has no territorial jurisdiction. So far as this question is concerned, this Court cannot assume jurisdiction in respect thereof. He further contended that transfer of the proceeding to CEGAT will not create jurisdiction so far as this Court is concerned. It will not create jurisdiction by reason of raising the demand against the petitioner company at Calcutta. Since the cause of action arose and all the respondents are outside the territorial jurisdiction of this Court, this Court cannot assume jurisdiction.