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Issues:
Challenge to show cause notices, quashing of show cause notices, seizure of goods and vehicle, legality of respondents' action, abetment charges, liability under Central Excise Act, strict construction of liability provisions, knowledge attribution to transporter, driver, and helper, technical default vs. evasion of duty, reliance on legal precedents, proper action by respondents, material for forming opinion. Analysis: The petitioners, transporters, challenged show cause notices and sought quashing of the same along with the seizure of goods and vehicle. They argued that as transporters not involved in manufacturing, they were beyond the Central Excise Act's purview. The notices accused them of abetting in clearing goods without duty payment. The petitioners contended that liability provisions must be strictly construed, and the notices were legally unsustainable, lacking material support. The petitioners' removal of goods with proper documentation absolved them of any liability for discrepancies. The liability for excise duty and document preparation rested with the manufacturer, not the transporters. The show cause notices alleged abetment but revealed the manufacturer paid full duty for a portion of the goods. The question was whether the transporters could be attributed with knowledge of the goods' confiscation liability, considering their roles and lack of technical knowledge. The court noted the transporters' limited roles and lack of technical understanding, emphasizing the manufacturer's responsibility for document preparation. Citing a Bombay High Court decision, the petitioners argued for quashing the notices, while the Union of India relied on a different case to support the legality of the notices. The court found insufficient material to support the respondents' opinion of the petitioners' guilt or knowledge of any violation. Relying on the Bombay High Court decision, the court allowed the petition, quashed the show cause notices, declared the seizure illegal, and discharged the bonds and security furnished. The court emphasized the lack of evidence supporting the respondents' actions and the petitioners' innocence regarding the alleged violations. The judgment highlighted the importance of proper attribution of liability and knowledge in excise duty cases, protecting transporters from undue legal consequences.
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