2008 (1) TMI 318 - HC - Central Excise

Petitioner is a manufacturer of Pan Masala containing tobacco revenue stating that the petitioner has not accepted the duty at higher rate as demanded, sealed the twelve packing machines petitioner plea is that department have not disclosed as to under which provision of law the authorities have initiated proceedings and seized the machines - without expressing any opinion on merits and demerits of the case revenue is directed to consider the reply submitted by the petitioner as per law

Summary

Issues:
Challenge to impugned communications regarding excise duty assessment and sealing of packing machines.

Analysis:
The petitioner, a manufacturer of Pan Masala containing tobacco, challenged the impugned communications dated 22-10-2007 and 29-10-2007, which stated that the petitioner did not accept the duty at a higher rate demanded by the Department. The petitioner contended that the communications were issued without authority of law and contrary to the provisions of the Central Excise Act. After seizing 12 packing machines, the petitioner submitted a detailed reply, but the authorities issued further communications without disclosing the legal basis for their actions.

Upon reviewing the materials and submissions, the court noted that the petitioner had requested a compassionate view and clarification on the legal provisions behind the duty demand. Instead of providing the requested information, the authorities issued additional communications. The respondents later produced a letter from the petitioner requesting the release of 7 packing machines to meet market demand and increase production, offering to pay additional duty per machine. Considering this correspondence and the circumstances, the court directed the 3rd respondent to evaluate the petitioner's submissions and the letter in accordance with the Central Excise Act, providing a reasonable opportunity to the petitioner and disposing of the matter within four weeks.

In conclusion, the court disposed of the writ petition, instructing the authorities to consider the petitioner's representations and the letter, ensuring compliance with the relevant legal provisions and granting a timely resolution to the matter.