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TMI Blog1965 (5) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... gate passes and without accounting for the same in the excise records, in contravention of Rules 9, 52A, 53 and 226 of the Central Excise Rules, 1944 and was asked to show cause why she should not be penalised therefor. The cause shown by the petitioner was not accepted by the respondent Assistant Collector. He found that the petitioner had contravened the provisions of Rules 9, 52A and 226 of the Central Excise Rules. He, therefore, held that the petitioner was liable to pay excise duty on 336.7236 metric tonnes of mustard oil amounting to Rs. 40431.28 paise and also liable to pay a penalty amounting to Rs. 250/-. I am told that the aforesaid adjudication order has been challenged by the petitioner and the matter is still subjudice. I, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have failed to deposit the amount of Rs. 3,000/- being the 10th instalment within the stipulated time." 5.The petitioner protested against steps under Rule 230 being taken against her but her protests were not upheld. The petitioner therefore, moved this Court, under Article 226 of the Constitution, praying for a writ of Mandamus directing the respondents not to give effect to the provisions of Rule 230 against her and for a Writ of Prohibition prohibiting the respondents from taking further steps under Rule 230 and obtained this Rule. 6.Mr. Kashikanta Maitra, learned Advocate for the petitioner, contended that Rule 230 of the Central Excise Rules was discriminatory and violative of Article 14 of the Constitution and should be struck down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preparations from which any such goods are made, and all plant, machinery, vessels, utensils, implements, and articles for making or manufacturing or producing any such goods, or preparing any materials, or by which the trade or business is carried on in the custody or possession of the person carrying on such trade or business, or in the custody or possession of any agent or other person in trust for or for the use of the person carrying on such trade or business, may be detained for the purpose of exacting such duty; and any officer duly authorised by general or special order of the Central Board of Revenue or of the Collector may detain such goods, materials, preparations, plant, machinery, vessels, utensils and articles until such dutie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld. Rule 230 of the Central Excise Rules is not a provision for recovery or realisation of excise duty in the same sense as Section 11 of the Central Excises and Salt Act is, but is merely a provision in aid of recovery and realisation of excise duty. Rule 230 was made in exercise of powers vested in the Central Government under Section 37(2)(xiii) of the Central Excises and Salt Act, which is set out below : "In particular, and without prejudice to the generality of the foregoing powers such rules may— **** (xiii) provide for the detention of goods, plant, machinery or material, for the purpose of exacting the duty, the procedure in connection with the confiscation, otherwise than under Section 10 or Section 28; of goods in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. It is a method in aid of realisation and may be applied against all defaulters to compel payment and that method failing the modes of recovery of dues under Section 11 have to be resorted to, the detention being continued until payment or realisation of duty. That being the position, this additional power for compelling payment of duty and for securing the assets wherefrom to realise the duty is not discriminatory or violative of the provisions of Article 14 of the Constitution, because the provision applies to all defaulters and may be applied even against defaulters against whom procedure for recovery of duty under Section 11 has already been adopted. The existence of such a power is not peculiar to the Central Excise Rules. Section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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