ORDER
1. The petitioner, it is said, is engaged in the manufacture of sugar and molasses availing Modvat credit facility under Rule 57A and Rule 57Q of the Central Excise Rules, 1944. In the process of manufacture of sugar, according to the petitioner, a by-product known as Tress mud’ is obtained at the stage of filteration of juice and no inputs on which the petitioners are availing Modvat credit are being used till the stage of filteration of juice. The petitioners were served with the show cause notice dated 29-8-1994. Contained in Annexure A-3 to the writ petition, which states, inter alia, that the petitioners have contravened the provisions of Rule 57CC of the Central Excise Rules inasmuch as they have not paid the amount of excise duty specified in the show cause notice on the price of certain quantity of ‘press mud’ cleared by them during the period 1-3-1997 to 31-5-1997 as per details given in the said show cause notice. The petitioners have been required to show cause to the Assistant Commissioner, Central Excise Division, Muzaffarnagar as to why an amount of Rs. 64,679/- should not be demanded from them under Rule 57CC of the Central Excise Rules read with Section 11 of the Central Excise Act and further why a penalty should not be imposed upon them under Rule 57-I read with Rule 173Q of Central Excise Rules, 1944. The petitioners allege that they have already filed a reply to the show cause notice and had also earlier made a representation dated 19-6-1997, contained in Annexure A-2 to the writ petition, denying their liability to any excise duty under the Central Excise Act or the Rules made thereunder. The adjudication upon the petitioners’ representation and in pursuance to the show cause notice is still pending. However, the petitioners have approached this Court seeking quashing of the letter dated 29-12-1997 addressed to the Supdt, Customs and Central Excise, Range-II, Muzaffarnagar by the Assistant Commissioner, Central Excise Division, Muzaffarnagar which recites, inter alia, that during the enquiries it is gathered from the local market that the price of ‘Press mud’ this year is approx. Rs. 15/- per quintal. The Supdt. was, therefore, advised to realise the duty accordingly from sugar units under his charge and also to procure a copy of the contract with various contractors made in regard to ‘Press mud’ and forward a copy of the same to the Assistant Commissioner, Central Excise Division, Muzaffarnagar. The petitioners have also prayed for a writ of mandamus commanding the respondents not to press for the demand of duty on ‘Press mud’ cleared till date during the pendency of adjudication proceedings in response to the show cause notice.
2. We have heard learned Counsel for the parties.
3. As the final decision is yet to be taken on the petitioners’ own showing and the matter is pending before the Assistant Commissioner, Central Excise Division, Muzaffarnagar, the second respondent, in our opinion it is not a fit case where the writ petition should be entertained at this stage or this Court may venture to enter into the merits of the controversy as to whether the petitioners can legally be subjected to excise duty in terms of the impugned show cause notice. However, as the matter is pending since a long time in as- much as the petitioners had made a representation on 19-6-1997 in which a similar controversy has been raised as in show cause notice we consider it expedient and to be in the interest of justice to direct the second respondent, the Assistant Commissioner, Central Excise Division, Muzaffarnagar before whom the adjudication is pending in pursuance of the show cause notice to decide the same expeditiously and in accordance with law, preferably, within a period of three months a certified copy of this order is filed by the petitioners before the said respondent. However, if for some reasons it is not found possible to decide the issue up for consideration within the period of three months, stated above, in that case the request of the petitioners will be considered for an interim relief, that is, for the stay of realisation of excise duty which is being demanded under the show cause notice from the petitioners.
4. Subject to the above observations, the writ petition shall stand finally disposed of.