1990 (12) TMI 234 - HC - Central Excise

Summary

Issues:
- Dismissal of writ petition challenging show cause notice and subsequent communication
- Imposition of condition regarding payment of interest after dismissal of writ petition

Analysis:
1. The appellant filed a writ petition challenging a show cause notice and subsequent communication. The learned Single Judge dismissed the writ petition, stating no reason to interfere with the notice or communication. However, the Single Judge addressed the issue of payment of interest, emphasizing the consequences of delaying duty payment. The Judge noted that interest should be paid when duty becomes due, considering the tactics used by businesses to delay payments. The Judge highlighted the importance of timely duty payment for the public benefit and ordered interest payment at 18% per annum from the due date until actual payment.

2. Following the dismissal of the writ petition, the Single Judge imposed a condition regarding the payment of interest, which the appellant challenged in a writ appeal. The appellant argued that the imposition of the condition after the dismissal was unwarranted as it closed the chapter of the writ petition. The Court agreed with the appellant, stating that the imposition of the condition was not justified after the writ petition's dismissal. The Court emphasized that the decision on whether the Revenue could recover interest should be left to the Revenue. The Court set aside the condition while upholding the Single Judge's judgment, partially allowing the writ appeal without costs.

3. The Court clarified that its order did not express any opinion on the appellant's liability, which would be determined by the Revenue in due course. The judgment focused on the procedural aspect of imposing conditions after the dismissal of a writ petition challenging a show cause notice and communication, emphasizing the need for timely duty payment and the consequences of delaying such payments.