PUNJAB TRACTORS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) THE petitioners are carrying on business of manufacturing tractors in a factory situate at Phase IV, SAS Nagar, Mohali, District Ropar and the tractors manufactured by the petitioners are sold under the brand name 'swaraj'.

(2.) A writ of certiorari has been preferred by the petitioners to quash the order dated 2. 11. 1995 issued by the Assistant Commissioner, Central Excise Division, Chandigarh, whereby the petitioners have been called upon to show cause within 30 days of the receipt of the notice as to why (i) Central Excise Duty amounting to Rs. 71,00,129. 00 as per details in Annexure 'a' should not be demanded from them under Section 11-A of the Central Excise and Sales Act, 1994 and (ii)penal action should not be taken against them under Central Excise Rules, 1994 for the contravention of the provisions of Rules 173-C, 173-F as mentioned in the notice. The petitioners were further directed to produce at the time of showing cause the whole evidence documentary or otherwise upon which they intend to rely in support of their defence.

(3.) THE respondents in their written statement controverted the averments made in the writ petition basically on the ground that only a show cause notice has been issued to the petitioners to explain their case and the writ petition against the said order is not entertainable. As the proceedings have been initiated under the CESA, 1944, therefore exercising of the extra ordinary writ jurisdiction by this Court is premature. The petitioners have been given a notice on the basic of principle of natural justice and are at liberty to represent their case before the Excise authorities who have to decide the case after the matter is considered on its merits on the basis of the evidence to be produced by the petitioners.