1994 (9) TMI 84 - HC - Central Excise

Summary

Issues:
1. Quashing of notice dated 28th July, 1994 under Section 11A of the Central Excises and Salt Act, 1944.
2. Challenge of notice on grounds of being time-barred and without jurisdiction.
3. Classification of intermediary product as excisable goods.
4. Exemption of intermediary product under Chapter 13 of the Central Excise Tariff.
5. Jurisdiction of the High Court under Article 226 of the Constitution.
6. Request to decide some issues as preliminary issues.

Analysis:

The petitioner sought the quashing of a notice dated 28th July, 1994, issued under Section 11A of the Central Excises and Salt Act, 1944, demanding payment of excise duty amounting to Rs. 53,79,299 for the period July, 1989 to February, 1994. The petitioner challenged the notice on the grounds of being time-barred and without jurisdiction. The notice alleged that the petitioner had suppressed facts regarding the manufacturing process of an intermediary product used in the final product to evade duty. The petitioner contended that the intermediary product, known as kwath, was exempt under Chapter 13 of the Central Excise Tariff, or if not exempt, it fell under sub-heading 3003.30 by a specific notification. The High Court refrained from delving into the classification and exemption issues, stating they should be raised before the authority in response to the show cause notice. The Court emphasized that such factual determinations were not suitable for examination under Article 226 of the Constitution.

The petitioner also requested the High Court to decide certain issues as preliminary issues due to the prolonged pendency of the matter. The Court left it to the authority to determine if these issues should be treated as preliminary, based on whether they were prejudicial to revenue or fundamental to the case. The Court declined to exercise its discretion under Article 226 of the Constitution and dismissed the petition, emphasizing that the petitioner should raise all relevant grounds before the appropriate authority in response to the show cause notice for a decision in accordance with the law.