2011 (12) TMI 660 - HC - Central Excise

Summary

Issues:
1. Seizure and detention of goods under Panchanama orders dated 27-10-2010.
2. Legality of business activities and search conducted by authorities.
3. Show cause notice issued by Directorate General Central Excise Intelligence.
4. Request for release of seized goods and payment of excise duty and penalty.
5. Provision of legible copies of relied upon documents in the show cause notice.
6. Pending adjudication proceedings and final order by the adjudicating authority.

Analysis:
1. The petitioner, a proprietor of two firms engaged in manufacturing and trading copper items, challenged the seizure and detention of goods under Panchanama orders dated 27-10-2010. The petitioner contended that the search and detention were illegal as there was no wrongdoing in the business activities.

2. A show cause notice was issued by the Directorate General Central Excise Intelligence, calling upon the petitioner to explain why the seized copper items should not be confiscated and why certain duties and penalties should not be imposed. The Additional Commissioner informed that the seized goods could be released provisionally after fulfilling certain formalities.

3. The petitioner expressed willingness to deposit the excise duty and penalty for the seized goods to secure their release. However, a dispute arose regarding the provision of legible copies of relied upon documents in the show cause notice, impacting the petitioner's ability to respond effectively.

4. The court noted that the adjudication proceedings were pending since 25-1-2011 and directed the petitioner to submit a reply/explanation within one month. The final order was to be passed by the authorized officer within a month thereafter, emphasizing the need for due process and timely resolution.

5. Regarding the release of seized goods, the court clarified that the statutory provisions allowed for confiscation of goods with the option for redemption upon payment of a specified amount. Releasing goods based on a deposit of excise duty and penalty before completion of adjudication would undermine the legal framework governing confiscation and redemption.

6. The judgment disposed of the writ petition with observations on the proceedings concerning other firms involved, emphasizing compliance with the law and due process in handling the matter.