1997 (12) TMI 506

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..... list No. 2/82 in which the manufacturer proposed deduction of tariff rate of duty from the cum-duty price to arrive at the assessable value, though paying only the lesser effective rate of duty. Before the finalisation of the price list, the assessee filed writ petition No. 3474/82 in the High Court of Andhra Pradesh and obtained an interim order directing payment of duty on future clearances on assessable value arrived at after deducting effective rate of duty from the cum-duty price on the condition that the manufacturer shall furnish bank guarantee for the differential duty. Fifteen bank guarantees were so filed in respect of the differential amount of duty. The total value of the bank guarantees was Rs. 2.25 crores in respect of the cle .....

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..... referring to the above facts and stating that the balance amount of Rs. 60 lakhs due from the respondent being differential duty on the cigarettes cleared from the factory is hereby confirmed. Treating this as an appealable order, the present respondent filed an appeal before the Collector (Appeals) who set aside the same on the ground that it should have been preceded by show cause notice under Section 11A of the Central Excises Act, 1944 and since no show cause notice was issued, the order was illegal. The correctness of this order is challenged by the Department. We have heard Shri K. Srivastava, SDR for the appellant. The respondent is absent and is unrepresented in spite of notice of hearing and there is no request for adjournment. 3 .....

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..... tatutory authority, the view taken by the Collector (Appeals) appears to be correct. In this view, the aspect that the respondent failed to renew the bank guarantees and did not make any deposit as required by the High Court has no significance; that is because it is not the case of the appellant that the High Court passed any order enabling the Department to recover the amount otherwise than by recourse to proceedings under the statute. Shri Srivastava was not able to inform us as to whether any proceedings are pending in the High Court or the Supreme Court and if so, at what stage the proceedings lie. 5. For the reasons indicated above, we find no ground to interfere and accordingly dismiss the appeal.
Case laws, Decisions, Judg .....

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