1997 (7) TMI 137 - SC - Central Excise

Summary

Issues Involved:
The judgment involves appeals arising from writ petitions filed under Article 226 of the Constitution to quash show cause notices issued to the assessees, who deny liability to pay excise duty.

Summary:

Issue 1: Justification for filing writ petitions
The assessees filed writ petitions to challenge show cause notices, claiming a trade notice left no scope for the departmental authorities to accept their contentions. The Supreme Court held that the trade notice was not decisive, and the appropriate course was for the assessees to reply to the show cause notices to enable authorities to record findings of fact.

Issue 2: Requirement for findings of fact
The Court emphasized that the question of excise duty exigibility depended on facts related to the process of creating the end product. It noted the absence of findings of fact by any authority regarding the items or goods in question. The Court directed the matters to go back to the Assistant Collector for the decision of factual questions.

Conclusion:
The Supreme Court allowed the appeals and directed the assessees to submit replies to the adjudicating authority within four weeks. The adjudicating authority was instructed to decide based on law, with further remedies available to aggrieved parties as per legal provisions.