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TMI Blog1994 (11) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... alty under Central Excises and Salt Act and Central Excise rules can be sustained where it is clear that the contravention of the provision of law in respect of levy and collection of additional duties of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957? (ii) Whehter M/s. Motley Industries (P) Ltd. Faridabad are entitled to any consequential relief? 2. The facts leading up to the filing of the reference application are that the respondents herein are processors of cotton fabrics and man-made fabrics. Certain quantity of man-made fabrics seized from the premises of the respondents on 24-7-1992 were confiscated with option to redeem the same on payment of a fine of Rs. 1 lakh and a penalty of Rs. 50,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditional duties as they apply in relation to the levy and collection of duties of excise on the goods specified is wide enough to make all provisions in the Central Excise Act and Rules applicable, and, therefore, since confiscation and penalty necessarily flow out of levy and collection of duty, the provisions relating to confiscation and penalty contained in the CESA will necessarily get attracted even to cases where the levy and collection is that of additional duty. Shri Naveen Mullick draws our attention to the relevant paragraph of the judgment of the Delhi High Court supra wherein the very same argument had been advanced by the Union of India and negatived by the Court, holding that a penal liability cannot be created by implicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn depended upon what the expression levy connotes and carries with it. The term levy , it is held, is an expression of wide import. It includes both imposition of a tax as well as its quantification and assessment ................ In Jain Brothers v. Union of India - 77 ITR 107 (also AIR 1970 SC 778) the Supreme Court said that penalty was not a continuation of assessment proceedings and penalty partook all the character of the additional tax. Considering the ratio of the decisions aforesaid we are of the opinion that there is no provision in the Additional Duties Act which creates a charge in the nature of penalty. We further said that the term levy and collection in section 3(3) of the Additional Duties Act has a restricted meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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