9911796707
TMI Blog1990 (8) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... cess it was inevitable due to the nature and volume of goods handled for certain shortages to occur every year. After annual stock-taking, a statement was filed before the authorities and they were aware of the said shortages. It was pointed out by the petitioner that shortages would be more in the smaller and bulk items, since it depended upon the nature of the goods and the quantity of goods produced and handled. In the year 1980, the Superintendent, Central Excise raised certain demands for the years 1973-1979, and the petitioners submitted their reply that the shortages not exceeding 2%-3% of the annual clearances were marginal and that the claim made by the department was also vague and arbitrary. 3. Thereupon, the third respondent is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the respondents submitted that the action of the Department is not vitiated by any of the infirmities as pleaded by the learned Counsel for the petitioner, that Section 11A and Rule 223-A deal with two different and independent situations, that only Rule 223-A, which does not provide for any period of limitation, alone applies to the case on hand and even on the very admissions of shortages by the writ petitioner, their liability to pay duty stood accepted and consequently the writ petition is liable to be dismissed. 6. On a careful consideration of the contention raised by the learned Counsel on either side, I am of the view that the plea of limitation raised by the writ petitioner does not merit acceptance. In my view, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and collection contemplated under Section 11A of the Act. In my opinion, to such a situation as contemplated under Rule 223A of the Rules, the limitation prescribed under Section 11A will have no application as they cover and deal with altogether different situations and serve different purpose and object. It may also be stated that the validity of Rule 223A as such was not challenged in these proceedings before me. It is not for the courts to import period of limitation by implication where there is none. Consequently, the submission raised on the applicability of Section 11A and the limitation stipulated therein is rejected. 7. With reference to the plea of the learned Counsel for the petitioner regarding the quantum of shortages arriv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtain products and shortages in others. Viewed in this background, Government observe that some shortages are bound to occur. In the circumstances, Government condone the shortages as due to natural causes. Government further observe that the method followed by the Department while raising the demand on the basis of highest value was arbitrary and hence not proper. Government, therefore, direct that where on the basis of loss of individual products, computation of the duty payable are not ascertainable because of stock-taking of range of products together instead of each and every individual product then for demand for duty on loss the value of the product in that product-group which has been highest in manufacture and clearance in the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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