Court upholds duty payment order, denies challenge under Article 226. Writ petition dismissed. The High Court upheld the order preventing the petitioner from paying duty on a monthly basis for two months due to belated payments. The court found the ...
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The High Court upheld the order preventing the petitioner from paying duty on a monthly basis for two months due to belated payments. The court found the order legal and justified, denying the petitioner's challenge under Article 226 of the Constitution of India. The writ petition was dismissed without costs, and pending miscellaneous petitions were also rejected.
Issues: 1. Non-payment of duty within the specified time leading to forfeiture of facility to pay duty on a monthly basis. 2. Dispute regarding belated payment of duty and denial of the facility to pay duty on a monthly basis. 3. Legality of the order under challenge in the writ petition.
Analysis:
Issue 1: The Assistant Commissioner of Customs & Central Excise issued proceedings stating that the petitioner failed to pay duty on time for the financial year 2002-03, rendering themselves liable for forfeiture of the facility to pay duty on a monthly basis under Rule 8(4) of the Central Excise Rules, 2002. The petitioner's grievance was being prevented from making monthly payments due to non-payment of duty within the specified time.
Issue 2: The petitioner had failed to pay duty on time on three occasions, leading to belated payment and incurring interest of around Rs. 10,500. The order noted the delay in payment and the petitioner's liability for forfeiture of the monthly payment facility for a period of two months or until all dues were paid.
Issue 3: The High Court found no reason to interfere with the order as the belated payment of duty was not disputed. The court held that the respondents were justified in denying the petitioner the facility to pay duty on a monthly basis for a limited period of two months. The court concluded that the impugned order was not illegal, warranting interference under Article 226 of the Constitution of India.
In conclusion, the writ petition was dismissed, and no costs were awarded. The court upheld the order preventing the petitioner from paying duty on a monthly basis for a period of two months due to belated payment of duty. Any pending miscellaneous petitions were also dismissed in light of the judgment.
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