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Issues:
1. Interpretation of Central Excise Duty rules regarding the switch from Standard Procedure to Special Procedure. 2. Validity of withdrawal of permission without a hearing. 3. Bar of limitation under Section 40(2) of the Central Excise Act. Analysis: Issue 1: Interpretation of Central Excise Duty rules The case involved a dispute regarding the payment of Central Excise Duty under the Standard Procedure and the Special Procedure. The respondent, a manufacturer of vegetable non-essential oils, opted for the Special Procedure but faced the withdrawal of permission by the authorities. The court examined the eligibility criteria for the Special Procedure and concluded that the withdrawal of permission was unjustified as the solvent extraction plant was not in operation during the relevant period. The trial court found in favor of the respondent, emphasizing the factual foundation of the case and the proper utilization of the Special Procedure. Issue 2: Validity of withdrawal without a hearing The appellants argued that the withdrawal of permission was justified under Section 10 of the Central Excise Act due to erroneous granting of permission. However, the court held that any benefit conferred should not be revoked without providing a reasonable opportunity to be heard, especially when monetary implications are involved. Citing a previous judgment, the court emphasized the importance of following the principles of natural justice. The court found the withdrawal of permission without a hearing to be improper and upheld the respondent's claim. Issue 3: Bar of limitation under Section 40(2) of the Central Excise Act The appellants contended that the suit was barred by time under Section 40(2) of the Act, limiting the period for filing a claim to six months from the date of accrual of cause of action. However, the court rejected this argument, noting that the suit was filed within the statutory period. Referring to a previous decision, the court highlighted that the limitation defense should not be used by public authorities to defeat legitimate claims. The court found the respondent's claim to be just and well-founded, rejecting the argument of limitation and emphasizing the importance of honoring entitlements established on a firm foundation. In conclusion, the court dismissed the appeal, affirming the trial court's decision in favor of the respondent. The court discouraged further litigation on the matter, emphasizing the need to bring an end to prolonged legal disputes.
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