Writ petition challenging excise duty notice dismissed due to payment default & financial difficulties.

The court dismissed the writ petition challenging a notice for non-payment of excise duty, as the petitioner defaulted on the payment commitment due to financial difficulties and insolvency proceedings initiated by a creditor. The petitioner was directed to pay arrears in installments but failed to comply, leading to the dismissal of the petition without costs imposed on either party.

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Issues:
Challenge to notice for non-payment of excise duty, interim order for payment of arrears, financial difficulty leading to default in payment, insolvency proceedings leading to dismissal of writ petition.

Analysis:
The petitioner challenged a notice issued by the third respondent, claiming a liability of Rs. 64.62 lakhs for non-payment of excise duty and defaulting on regular duty amounts. An interim order was granted, directing the petitioner to pay Rs. 43.08 lakhs in two installments to demonstrate bona fides. The petitioner had initially agreed to pay arrears in 18 monthly installments of Rs. 21.54 lakhs each but defaulted after the fourth installment, prompting the garnishee notice. Due to financial difficulties, the petitioner sought more time to fulfill the payment commitment. The first installment was paid, but before the second installment, insolvency proceedings were initiated by a creditor, leading to the dismissal of the writ petition. The court ruled that the petitioner could no longer maintain the petition, allowing the Department to pursue recovery proceedings as per rules, with no costs imposed on either party.

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