BASANTAR BOTTLES Vs. STATE OF J & K

JUDGEMENT

(1.) This order will dispose of a bunch of petitions bearing OWP Nos. 1183/2010, 1185/2010, 1186/2010, 1384/2010, 1423/2010, 1442/2010 and 1443/2010. All the cases have been taken up together as the legal issues involved are common.

(2.) As pleaded, the petitioner ( M/s Basantar Bottlers) herein is a sole proprietorship concern. He is engaged in business of blending and bottling of Indian Made Foreign Liquor and JK Desi Whisky. He is having his Unit at Industrial Growth Centre, SIDCO, Samba under license No. 06/JKEL-6. It is claimed that during the period from February 26 to October 10, 2009 the petitioner exported Indian Made Foreign Liquor (for short 'IMFL' hereinafter) to other States against export permits issued by the Excise Department. The permits were got issued for export of IMFL to the importers in the State of Goa. The export of IMFL from the State of Jammu and Kashmir to any other State against due permission was exempted from payment of Excise Duty. The petitioner availed that exemption. Later on, the department found that the export was on the basis of some fake documents. Accordingly, demand notice dtd. 25/9/2010 was issued against the petitioner, directing the petitioner to remit an amount of Rs.4,51,65,600.00 as Excise Duty within a period of 15 days from the date of service of the notice failing which same was to be recovered as arrears of land revenue. Against the demand raised, the petitioner has filed the present writ petition.

(3.) Subsequently, the respondents issued notice dtd. 7/10/2010, directing the petitioner-M/s Basantar Bottlers to remit an amount of Rs.2,70,000.00 as toll tax and fine of Rs.27,00,000.00 on account of misuse of Toll Tax exemption on fake documents. The petitioner was further directed to explain his as to why he should not be debarred from claiming toll tax exemption for a period of one year in terms of Rule 58 of the Jammu and Kashmir Levy of Toll Rules, 1995 (hereinafter referred to as 'the Rules'). The aforesaid notice was followed by final notice dtd. 8/11/2010, whereby the petitioner was directed to deposit the aforesaid amount and was further directed to explain his position within 15 days as to why he should not be debarred from claiming the toll tax exemption for a period of one year. Both the aforesaid notices have been challenged by the petitioner by filing the present writ petition.