9911796707
TMI Blog1993 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... Though I am concerned only with the miscellaneous petition seeking an interim injunction restraining the respondents from insisting on such payment, pending disposal of the writ petition, a few facts may be necessary to understand the scope of the prayer in the injunction petition. The petitioner company is manufacturing Sodium Bichromate which in turn is used in the manufacture of paints and certain other industries. Due to financial and other difficulties the Company approached the Board under the said Act and it was duly declared as a Sick Unit within the meaning of Section 3(1) (b) of the Act. The Industrial Reconstruction Bank of India was appointed as the operating agency to finance the scheme of rehabilitation for reviving the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not kept it with himself and has to pay the same to the Government. According to him, Section 22 of the Act will not come to the aid of the petitioner-company in the matter of collection of excise duty at the time of removal of the goods. 4. The short and interesting question of law is whether Section 22 of the Act would include the action of the Central Excise Authorities in collecting excise duty at the time of the removal of the manufactured goods. The important words in Section 22 which have to be construed for the purpose of this case is as follows :- "...no proceedings for the winding up of the industrial company or for execution, distress or the like against any of the properties of the industrial company or for the appointment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of electricity supply for non-payment of electricity charges, would amount to "execution or any coercive process initiated for the realisation for the dues of the Electricity Board, from the properties of the company. 6. On the other hand strong reliance is placed by the petitioner on the recent judgment of the Supreme Court in Maharashtra Tubes Ltd. v. S.I.I. Corpn. of Maharashtra Ltd. (1993 (2) S.C.C. 144). This case relates to the action taken by a State Financial Corporation under Sections 29 and 31 the State Financial Corporation Act, 1951. It was held that the word 'proceedings' is Section 22(1) of the Act must be widely construed. The apex court has observed as follows:- "We are, therefore, of the opinion that where an inquiry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of preventing the Central Excise Authorities from demanding and collecting excise duty at the time of the removal of the manufactured goods, I make it clear that I am not concerned with a case of arrears of excise duty accumulated over a period of years. Therefore, the interim order of the Supreme Court of India referred to in the affidavit of the petitioner in Civil Appeal No. 1028 of 1990, would not, in my opinion, apply to the present facts of the case. 7. The only other argument of Mr. G. Ramaswamy learned Senior Counsel appearing for the petitioner is that it was open to the respondents to approach BIFR and seek their consent for recovering the excise duty at the time of removal of the goods. On the other hand the counsel for the R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
