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Issues: Petition under Article 227 regarding central excise duty on prepared culture media, classification of intermediate products as "goods" under Central Excise Act, 1944, ad interim relief granted, withdrawal of petition without prejudice, direction for continuation of bank guarantees and expeditious decision by respondent-authorities.
Analysis: 1. The petition arose from letters issued by the Superintendent of Central Excise & Customs to the petitioner-Company, demanding central excise duty on prepared culture media and details of production. The petitioners sought a declaration that intermediate products in the manufacture of antibiotics are not excisable goods under Section 2(d) of the Central Excise Act, 1944. 2. The Court admitted the petition and granted ad interim relief restraining the respondents from enforcing excise procedures or recovering duty on the intermediate products. The relief was subject to the petitioners providing security for the claimed excise duty amount. 3. During the final hearing, the petitioner's counsel informed the Court about show cause notices issued by the authorities on the same subject matter, which were put on hold due to the interim stay. The counsel referenced decisions by different benches of the Tribunal stating that prepared culture media may not be marketable goods due to susceptibility to contamination. 4. The petition was disposed of as not pressed since the matter had not progressed beyond show cause notices, and the petitioner was willing to present defenses before the authorities. The Court directed the continuation of bank guarantees for six months and instructed the respondent-authorities to hear the petitioners, decide the matter promptly within four months, and allow the filing of written replies within one month. 5. The petition was disposed of subject to the directions for bank guarantees continuation and expeditious decision-making by the authorities within four months. The rule was discharged with no order as to costs, emphasizing the importance of a swift resolution while maintaining the status quo on bank guarantees.
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