1998 (9) TMI 90 - HC - Central Excise

Summary

Issues:
1. Petition for writ application seeking various reliefs including Mandamus, Certiorari, and direction for setting up an iodized plant.
2. Rejection of petitioner's application for setting up an Iodization Plant at Purulia.
3. Consideration of petitioner's application by the Salt Commissioner.
4. Interpretation of Section 32 of the Central Excises and Salt Act, 1944.
5. Jurisdictional errors in the impugned order by the Salt Commissioner.

Analysis:

1. The petitioner filed a writ application seeking reliefs like Mandamus and Certiorari, challenging the orders issued by the respondents regarding the setting up of an iodized plant and transportation of iodized salt. The petitioner also sought directions for the consideration of their application for setting up a plant at Purulia.

2. The petitioner's application for setting up an Iodization Plant at Purulia was rejected by the Salt Commissioner citing economic viability concerns and a policy decision not to permit more iodization units at locations other than salt manufacturing centers. The rejection was challenged in the writ application.

3. The Court noted that the impugned order by the Salt Commissioner was passed without jurisdiction, as it failed to consider relevant facts and based the decision on irrelevant considerations. The Court held that the Salt Commissioner must pass orders in accordance with the Act and Rules, considering the correct questions and relevant provisions.

4. Section 32 of the Central Excises and Salt Act, 1944, was analyzed concerning the rights of proprietors of salt works and the licensing requirements for salt manufacturing. The Court emphasized the need for the Salt Commissioner to apply his independent mind and follow the provisions of the Act and Rules.

5. The Court found errors in the impugned order, quashed the order, and directed the Salt Commissioner to reconsider the matter afresh, ensuring a proper decision based on law and relevant considerations. The Court highlighted the importance of giving an opportunity of hearing to the parties and their representatives.

6. The judgment also addressed the transportation of salt, indicating that the transportation would be governed by applicable rules. The writ application was disposed of with the mentioned observations, emphasizing the need for compliance with legal provisions and a fair decision-making process.