1983 (6) TMI 33 - HC - Central Excise

Block or crump rubber Classification of goods Burden of proof on the Department - Assessment

Summary

Issues involved: Determination of liability to Central Excise duty on crump rubber produced in petitioner's factory, failure of respondents to dispose of representations Exts. P3 and P5, jurisdictional fact regarding excise duty liability.

Liability to Central Excise Duty: The petitioner, a private limited company, challenged the imposition of Central Excise duty on crump rubber produced in its factory under Tariff Item No. 68. Despite the petitioner's objections and reference to a previous decision, the respondents repeatedly requested details without providing a reasoned decision. The court emphasized the need for a speaking order supported by evidence to establish the liability for excise duty, highlighting the principle of fairness and natural justice in taxation matters.

Non-disposal of Representations: The respondents failed to address the petitioner's objections in representations Exts. P3 and P5, continuing to demand information without proper adjudication. The court criticized this approach as unwarranted, stressing the importance of providing a genuine opportunity for the petitioner to present their case and receive a reasoned decision based on facts and law.

Jurisdictional Fact: The question of whether crump rubber falls under Central Excise Tariff Item 68 was deemed a jurisdictional fact by the petitioner's counsel. The court refrained from exercising discretionary jurisdiction under Article 226, directing the respondents to consider and dispose of the representations, providing a fair opportunity for the petitioner to be heard before making a final determination on the excise duty liability of the crump rubber produced in their factory.