9911796707
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Issues:
1. Whether the petitioner was given a reasonable opportunity to challenge the classification of the manufactured article under the Central Excise Act. 2. Whether the Authorities acted arbitrarily in classifying the article as excisable under the Act without providing the petitioner with an opportunity to contest. 3. Whether the demands made by the Authorities on the petitioner for excise duty payment are valid. Analysis: 1. The petitioner argued that she was not given a fair opportunity to contest the classification of the manufactured article as excisable under the Central Excise Act. The Authorities unilaterally decided to classify the article as excisable based on an analyst report without providing the petitioner with a copy of the report or considering her objections. The petitioner requested a retest, but the Authorities delayed providing the report, leading to the rejection of the retest request as time-barred. The court found that the petitioner was not given a reasonable opportunity to challenge the classification, as only one inadequate sample was taken for analysis, contrary to the usual procedure of taking three samples for testing. The rejection of the retest request was due to the unavailability of additional samples, indicating a lack of opportunity for the petitioner to verify the classification. 2. The court held that the proceedings initiated by the Authorities to levy excise duty on the petitioner's manufactured article were quasi-judicial in nature. The Authorities should have allowed the petitioner to contest the classification before finalizing their decision. Despite doubts regarding the classification, the Authorities relied solely on the Chemical Examiner's report to demand excise duty from the petitioner. The court emphasized that the Authorities should have provided the petitioner with a copy of the report, considered her representations, and ordered a retest if necessary. The demand for excise duty was based on the Authorities' decision without affording the petitioner a proper opportunity to challenge it, violating principles of natural justice. 3. The Authorities claimed that the petitioner admitted liability to pay excise duty based on the Chemical Examiner's report. However, the court found that the petitioner's statements did not amount to an admission of accepting the report's correctness. The petitioner had requested a fresh test immediately after receiving the demands, indicating her refusal to accept the report without verification. The court concluded that the Authorities' reliance on the report without allowing the petitioner to effectively challenge it constituted a violation of natural justice. Consequently, the demands made by the Authorities on the petitioner for excise duty payment were quashed. In conclusion, the court allowed the Writ Petition, quashing the demands made by the Authorities on the petitioner for excise duty payment. The court did not address the other contentions raised by the petitioner as they were deemed unnecessary. The Authorities were given the option to take further lawful actions regarding the petitioner's manufactured article.
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