1998 (1) TMI 81 - HC - Central Excise

Summary

Issues: Manufacturing of sugar and molasses, availing Modvat credit facility, contravention of Rule 57CC of Central Excise Rules, show cause notice for non-payment of excise duty on 'Press mud,' pending adjudication, quashing of letter demanding duty, writ of mandamus to not press for duty during adjudication.

In this case, the petitioner, engaged in sugar and molasses manufacturing, availing Modvat credit, received a show cause notice for allegedly contravening Rule 57CC of the Central Excise Rules by not paying excise duty on 'Press mud' cleared during a specific period. The petitioner denied liability and filed a reply and a representation. The matter was pending adjudication before the Assistant Commissioner, Central Excise Division, Muzaffarnagar. The petitioner sought quashing of a letter advising duty collection on 'Press mud' and a writ of mandamus to halt duty demand during adjudication. The High Court, considering the pending adjudication, declined to entertain the writ petition on the merits of excise duty imposition. However, to expedite the adjudication, the Court directed the Assistant Commissioner to decide the matter within three months. If not feasible, the petitioner could request interim relief for stay of duty realization. The writ petition was disposed of with these directions.