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2016 DIGILAW 336 (RAJ)

Rochiram & Sons v. Union of India

2016-02-26

AJAY RASTOGI, J.K.RANKA

body2016
ORDER : Instant petition is directed against the show cause notice issued from the office of Central Excise Commissioner ate, Jaipur-I, dated 6-8-2001, raising demand based on the Circular dated 12-11-2001 holding duty on exempted final product by manufacturers producing both dutiable and exempted goods without maintaining separate account for inputs and in furtherance thereof a further show cause notice was served upon the petitioner dated 23-3-2001. Since there was no interim order protecting rights of the petitioner the adjudicating authority passed the order raising demand vide its order dated 8-3-2002 and immediately thereafter the petitioner moved amendment application seeking permission of the Court and that was allowed and he challenged validity of the order of the adjudicating authority dated 8-3-2002 as well. 2. When the matter came up before the Court for hearing on 13-8-2015, counsel for petitioner brought to our notice that the Circular dated 12-11-2001 has been examined by the Larger Bench of the Tribunal in a case reported in 2006 (204) E.L.T. 323 (Tribunal-LB) : 2006 (4) S.T.R. 491 (Tribunal-LB), and according to him the department has complied with order of the Tribunal and made it applicable in rem and submitted that in the light of the order of the Larger Bench of the Tribunal the demand which is impugned in the instant petition deserves to be quashed. 3. We called upon the respondent’s counsel to seek instructions but as it is usual practise time was sought but no one came forward to instruct counsel for the respondent as to what was the fate of the judgment of the Tribunal on which the petitioner placed reliance and what steps have been taken by the department pursuant thereto. 4. When the matter came up before us on the last date of hearing on 23-2-2016 we took serious note of the matter and since no one was coming forward to assist the Court in the matter to apprise about the fate of the judgment of Larger Bench of the Tribunal we were constrained to call upon the Commissioner, Central Excise a Customs. 5. 5. In compliance of our order dated 23-2-2016 the officer is present in Court and informed that Circular dated 12-11-2001 which was the source of raising demand against the present petitioner and subject matter of challenge in the instant proceedings came to be withdrawn by the department keeping in view order of the Larger Bench of the Tribunal by their subsequent Circular No. 870/08/2008-CX, dated 16-5-2008. 6. We do find the reference being made in Para 5 of the present Circular dated 16-5-2008 that the Board’s Circular No. 599/36/2001-CX, dated 12th November, 2001 stands withdrawn. 7. After taking note of the Circular dated 16-5-2008 of which we have made a reference and the very source of the Circular dated 12-11-2001 which stands withdrawn, in our considered view the demand raised by the adjudicating authority vide order dated 8-3-2002 does not hold good and deserves to be quashed. 8. It is brought to our notice that an Office Note No. 1/2016 has been issued from the office of Commissioner, Central Excise, Jaipur, dated 26-2-2016 entrusting the senior officers to personally brief the department counsel. It is expected that henceforth necessary steps will be taken by the department to assist the Court in the light of the Office Note No. 1/2016, dated 26-2-2016. 9. Consequently, the writ petition succeeds and is hereby allowed and the order of the adjudicating authority dated 8-3-2002 impugned is hereby quashed and set aside. No costs. Petition allowed.