9911796707
TMI Blog1989 (10) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... other relevant records the officer found several irregularities and discrepancies. 2. The Petitioner was served show cause notice and was called upon to show cause as to why excise duty amounting to Rs. 32,43,576.09 ps. should not be recovered on processed man-made fabrics measuring 60,48,662.50 Lmts. valued at Rs. 6,17,66,588.37 ps. The petitioner was also called upon to explain as to why the action mentioned in the show cause notice be not taken. 3. At the conclusion of the enquiry, the Collector directed the petitioner to pay an amount of excise duty of Rs. 32,43,576.09 ps. (Rs. 31,12,568.03 ps. additional excise duty + Rs. 1,31,008.06 ps handloom cess). The Collector also imposed a penalty of Rs. 15,00,000/- upon the petitioner. Aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt stayed the operation of the order of Tribunal. It is stated at the Bar that the petitioner has paid the aforesaid amount in the Tribunal. Thus, still the petitioner would be required to make deposit of Rs. 16,00,000/- (Rs. sixteen lakhs) as per the direction given by the Tribunal in its order date 7-12-1988 (Annexure K), if the order of the Tribunal becomes operative and the same is to be implemented. 5. The petitioner contends that the order passed by the Tribunal is not just and proper. In his submission, at the most an amount of Rs. 4,00,000/- as ordered by this Court should have been directed to be deposited and not an amount of Rs. 20,00,000/- as has been done by the Tribunal. It is submitted that the Tribunal has not applied it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d so as to adversely affect the other side. In matters pertaining to fiscal statutes and collection of taxes from factory owners, traders and businessmen, and other tax payers, consequences of interim orders are required to be borne in mind by the Court. In the instant case the Tribunal directed as per its order dated December 7, 1988 that the petitioner should deposit Rs. 20,00,000/- in cash and on that condition there shall be waiver of pre-deposit as well as stay of recovery of balance duty and penalty amount. The Tribunal granted eight weeks' time to make deposit from the date of communication of the order. It may be reasonably calculated that by February 10, 1989 eight weeks' time would have been over. However, before that time, by ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution of India there is no "crown", there is no "subject". The society through the instrumentality of the States and the Governments, taxes its members, i.e., the people in whom the ultimate sovereignty rests, empower the Government as provided under the Constitution to tax themselves. In view of this Constitutional provision, the society needs protection from the powerful economic interest that be. The Court machinery and the orders of the Court cannot be permitted to be used by the powerful economic interests so as to inflict loss on the society. Just as the citizens need protection at the hands of the Court, the society also requires to be protected from the onslaughts of powerful economic interests. 7. If the request as made is g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot only illegal but it amounts to permitting the factory owner to fleece the pockets of the people. Under the cover of law instead of the factory owner paying tax to the society, the society pays tax to the factory owner." The aforesaid observations made by the Division Bench of this Court are pertinent and are required to be borne in mind while considering the request for granting time to make payment. 8. Court by its order would not and rather should not permit a litigation in Court to be converted into sound business proposition. No capital investment, no risk. But all profits and profits. Even if a petitioner ultimately loses, he stands to gain by way of interest benefit enormously and maintains comfortable liquidity position during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main in operation upto December 18, 1989. However, if the petitioner does not make payment of the amount of interest as indicated herein above, this direction by which the ad interim relief granted earlier by order dated January 24, 1989 is kept in abeyance upto December 18, 1989 shall stand automatically vacated. 11. Office is directed to send a copy of this order to respondent No. 2 herein, i.e., the Registrar, Customs, Excise and Gold (Control) Appellate Tribunal, Bombay. 12. Subject to the aforesaid observation and direction the petition stands rejected. Ad interim relief stands rejected. However, if the direction given herein above is complied with, order vacating ad interim relief shall remain in abeyance upto December 1989. Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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