{"id":105127,"date":"2008-07-11T00:00:00","date_gmt":"2008-07-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/haryana-vs-union-on-11-july-2008"},"modified":"2017-07-05T11:48:03","modified_gmt":"2017-07-05T06:18:03","slug":"haryana-vs-union-on-11-july-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/haryana-vs-union-on-11-july-2008","title":{"rendered":"Haryana vs Union on 11 July, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Haryana vs Union on 11 July, 2008<\/div>\n<div class=\"doc_author\">Author: D.A.Mehta,&amp;Nbsp;Honourable Ms.Justice H.N.Devani,&amp;Nbsp;<\/div>\n<pre>   Gujarat High Court Case Information System \n\n  \n  \n    \n\n \n \n    \t      \n         \n\t    \n\t\t   Print\n\t\t\t\t          \n\n  \n\n\n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n\n \n\n\n\t \n\nSCA\/5478\/1998\t 3\/ 5\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 5478 of 1998\n \n\n \n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE D.A.MEHTA  \nHONOURABLE\nMS.JUSTICE H.N.DEVANI\n \n \n==========================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n1\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n2\n\t\t\n\t\t \n\t\t\t \n\nTo\n\t\t\tbe referred to the Reporter or not ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n3\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n4\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tthis case involves a substantial question of law as to the\n\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\tmade thereunder ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n5\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tit is to be circulated to the civil judge ?\n\t\t\n\t\n\n \n\n \n==========================================\n\n\n \n\nHARYANA\nSHEET GLASS LIMITED &amp; 1 - Petitioner(s)\n \n\nVersus\n \n\nUNION\nOF INDIA &amp; 29 - Respondent(s)\n \n\n=========================================\n \nAppearance : \nMR\nRAKESH GUPTA, MR.UDAY JOSHI AND MS.POOJA GUPTA, ADVOCATES FOR M\/S\nTRIVEDI &amp; GUPTA for Petitioners \nMRS\nVASAVDATTA BHATT for Respondent(s) : 1 - 2,4 - 5. \nMR HARIN P RAVAL\nfor Respondent(s) : 3, \nNOTICE SERVED for Respondent(s) : 6,8 -\n30. \nNOTICE UNSERVED for Respondent(s) :\n7, \n==========================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.A.MEHTA\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMS.JUSTICE H.N.DEVANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\nDate\n: 11\/07\/2008 \n\n \n\n \nORAL\nJUDGMENT<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE D.A.MEHTA)<\/p>\n<p>This<br \/>\n\tpetition was admitted by an order dated 18.8.1999 and interim relief<br \/>\n\twas granted by the same order after recording various contentions of<br \/>\n\tboth the sides and the peculiar facts of the case.  Against a demand<br \/>\n\tof Rs,6,76,07,490\/-, the petitioner was called upon to deposit a sum<br \/>\n\tof Rs.1,30,00,000\/- on or before 29.9.1999 and another sum of<br \/>\n\tRs.1,00,00,000\/- on or before 20.10.1999.  The operative part of the<br \/>\n\tdirections reads as under :\n<\/p>\n<p>?SIt<br \/>\n was submitted that the amount to be paid by the      petitioners is<br \/>\nabout Rs.  6,76,07,490.00 and  at  present under  the  interim<br \/>\nrelief the amount which will be made payable in two installments<br \/>\nwould come to only Rs.2.3  crores i.e.  1.3  crores  and  Rs.  1<br \/>\ncrore.  Even if the amount of bond will be taken into account  which<br \/>\nis  Rs.1.5  crores  then also,the total amount would come to Rs.3.8<br \/>\ncrores.  The petitioners, therefore, must be directed to furnish a<br \/>\nbank  guarantee  and\/or  security  for  the  remaining amount  of<br \/>\nRs.    4.46  crores  as  in case of failure, the petitioner would be<br \/>\nliable to pay  the  said amount.   We  may, however, state that<br \/>\nprima-facie we are satisfied that without issuance  of  show  cause<br \/>\nnotice, affording    opportunity    of    hearing   and   without<br \/>\nadjudication, the petitioner could not have been asked to pay the<br \/>\namount of Rs.  6.76 cores .   Again,  prima-facie we  are  satisfied<br \/>\nthat  when  the  petitioner  unit  is permitted to be converted from<br \/>\nEOU to EPCG, the amount of Rs.3.14 crores would be substantially<br \/>\nreduced, by  more than Rs.   2.70 crores..  Again in our opinion, the<br \/>\norder passed by us would not adversely affect the  interest  of<br \/>\nrevenue. ?S<\/p>\n<p>The<br \/>\n\tpetition is required to be decided on a limited count. It is an<br \/>\n\tadmitted position that the demand was raised for payment of<br \/>\n\tdifferential duty amount vide communications dated 5.9.1997 and<br \/>\n\t14.10.1997, but ultimately, the said demand came to be quantified<br \/>\n\tvide communication dated 14.12.1998 at a figure of Rs.6,76,07,490\/-.\n<\/p>\n<p>The<br \/>\n\tprincipal case of the petitioner is that even during pendency of the<br \/>\n\trequest of the petitioner before the Development Commissioner to<br \/>\n\textend the gestation period of 12 months from the date of<br \/>\n\tre-starting of the production and before the request of the<br \/>\n\tpetitioner for conversion from EOU to EPCG could be granted, the<br \/>\n\tthree communications dated 5.9.1997, 14.10.1997 and 14.12.1998 came<br \/>\n\tto be issued demanding the aforesaid differential amount of duty<br \/>\n\twithout issuing any show cause notice or without any adjudication<br \/>\n\torder as to the liability of the petitioner.  It was, therefore,<br \/>\n\tsubmitted that the said three communications are required to be<br \/>\n\tquashed and set aside.  In support of the submissions made, reliance<br \/>\n\thas been placed on the Apex Court decisions in the case of Metal<br \/>\n\tForgings v. Union of India,  2002 [146] ELT 241 and Akay<br \/>\n\tCosmetics Pvt. Ltd., 2005 [182] ELT 294.  The learned<br \/>\n\tcounsel appearing on behalf of the respondent authority was not in a<br \/>\n\tposition to dispute the fact that no show cause notice was issued<br \/>\n\tand that, there was no adjudication fixing the liability to duty, on<br \/>\n\tthe basis of which the aforesaid amount came to be demanded under<br \/>\n\tthe impugned communications.\n<\/p>\n<p>In<br \/>\n\tthe case of Commissioner of Central Excise v. Akay Cosmetics<br \/>\n\tPvt. Ltd.\n<\/p>\n<p>\t(supra), the Apex Court has reiterated the earlier statement of law<br \/>\n\tin the following words :\n<\/p>\n<p>?S[46]\t\tLastly,<br \/>\nwe find that the demand for differential duty for the period 1\/1\/1988<br \/>\nto 31\/8\/1988 without issue of show cause notice under Section 11A,<br \/>\nwas sustainable.\n<\/p>\n<p>[47]\t\tIn<br \/>\nthe case of <a href=\"\/doc\/144508\/\">Union of India &amp; Others v. Madhumilan Syntex Pvt.<br \/>\nLtd.,<\/a> reported in 1988 [35] ELT 349, this Court held that the demand<br \/>\nraised without notice was invalid.  That, Section 11A clearly<br \/>\nproceeded to say that prior show cause notice must be issued to the<br \/>\nperson against whom any demand on grounds of short-levy or non-levy<br \/>\nwas proposed and, therefore, post-facto show cause notice cannot be<br \/>\nregarded as adequate in law.??\n<\/p>\n<p>\tApplying<br \/>\n\tthe well settled legal position to the facts of the case, it is<br \/>\n\tapparent that, in absence of any show cause notice and consequential<br \/>\n\tadjudication, the impugned communications dated 5.9.1997 and<br \/>\n\t14.10.1997 (Annexure ?SK?? collectively) and the letter dated<br \/>\n\t14.12.1998, cannot be permitted to hold the field. Accordingly, all<br \/>\n\tthe three communications are quashed and set aside.  As a<br \/>\n\tconsequence, the amount paid under order dated 18.8.1999 shall be<br \/>\n\treturned to the petitioner within a period of four weeks from the<br \/>\n\tdate of receipt of a certified copy of this order, without the<br \/>\n\tpetitioner having to make a claim therefor.  In relation to the<br \/>\n\tother prayers made, suffice it to state that, in the facts and<br \/>\n\tcircumstances of the case, the Court has not thought it fit to enter<br \/>\n\tinto merits of the controversy considering the fact that no show<br \/>\n\tcause notice has been issued and the said issues can be decided as<br \/>\n\tand when the same are raised in appropriate proceedings, if any.\n<\/p>\n<p>\tThe<br \/>\n\tpetition is allowed, accordingly, in the aforesaid terms.  Rule made<br \/>\n\tabsolute.  There shall be no order as to costs.\n<\/p>\n<p>[D.A.MEHTA,<br \/>\nJ.]<\/p>\n<p>[HARSHA<br \/>\nDEVANI, J.]<\/p>\n<p>parmar*<\/p>\n<p>\t\t   \u00a0\u00a0\u00a0<\/p>\n<p>\t\t   Top<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Haryana vs Union on 11 July, 2008 Author: D.A.Mehta,&amp;Nbsp;Honourable Ms.Justice H.N.Devani,&amp;Nbsp; Gujarat High Court Case Information System Print SCA\/5478\/1998 3\/ 5 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 5478 of 1998 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE H.N.DEVANI ========================================== 1 Whether Reporters of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-105127","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Haryana vs Union on 11 July, 2008 - Free Judgements of Supreme Court &amp; 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