2012 (1) TMI 213 - HC - Central Excise

Court orders return of undated cheques and demand draft, defers seizure issue pending ongoing proceedings.

The court disposed of the writ petition with an agreement for the return of undated cheques and a demand draft to the petitioner. Regarding the seizure of ... Return of seized negotiable instruments - refund of seized cash pending adjudication - show cause notice under the Central Excise Act, 1944 - seizure and proceedings pending adjudicationReturn of seized negotiable instruments - Return of the demand draft and two undated cheques seized during search - HELD THAT: - The Court directed the respondent-Revenue to return the demand draft and the two undated cheques which had been seized, on instructions received from Revenue. The order records that the instruments will be returned to the petitioner within fifteen days. This direction constitutes a final disposition insofar as those specific instruments are concerned. [Paras 1]Demand draft and the two undated cheques to be returned to the petitioner within fifteen days.Refund of seized cash pending adjudication - show cause notice under the Central Excise Act, 1944 - seizure and proceedings pending adjudication - Claim for refund of Rs. 42 lacs seized at the time of search - HELD THAT: - The petitioner relied on precedent to contend that the seized cash ought to be refunded where a show cause notice is required. The respondent informed the Court that a show cause notice under the Central Excise Act, 1944 has been issued and adjudication proceedings are pending. In view of the pending proceedings, the Court declined to order refund of the seized cash at this stage and left the matter to be decided in the ongoing proceedings. [Paras 2]No order for refund of the seized Rs. 42 lacs; matter to await adjudication pursuant to the issued show cause notice.Final Conclusion: The writ petition is disposed of by directing immediate return of the demand draft and two undated cheques within fifteen days; claim for refund of seized cash is declined pending adjudication under the show cause notice issued by Revenue. Issues involved: 1. Return of demand draft and undated cheques 2. Seizure of &8377; 42 lacs without show cause notice 3. Expedited proceedings post show cause notice issuance Issue 1: Return of demand draft and undated cheques The respondent-Revenue agreed to return two undated cheques of &8377; 25 lacs each and a demand draft of &8377; 58 lacs to the petitioner within fifteen days.Issue 2: Seizure of &8377; 42 lacs without show cause notice The respondent had seized &8377; 42 lacs during a search. The petitioner cited a Gujarat High Court decision stating that under Section 11A of the Central Excise Act, a show cause notice should have been issued before seizure. The respondent confirmed the issuance of a show cause notice and pending proceedings. The court declined to order the refund of &8377; 42 lacs at this stage.Issue 3: Expedited proceedings post show cause notice issuance The respondent assured that proceedings following the show cause notice are being conducted promptly, with the petitioner expressing no grievances in this regard.In conclusion, the writ petition was disposed of in accordance with the agreed terms of returning the demand draft and undated cheques, while the issue of the seized &8377; 42 lacs was deferred pending ongoing proceedings post show cause notice issuance.