Excise recovery and attachment can continue pending adjudication when assessment demand is already in place.

Attachment and recovery proceedings were sustained where an assessment memorandum and demand notice formed the basis of recovery, even though final adjudication of the excise demand was still pending. The court noted that the dispute over the demand and proposed penalty could be pursued before the competent excise authorities, and that prior issuance of cheques, some of which were dishonoured, supported continuation of recovery action. No ground was found to interfere with the attachment at that stage, and the petition was rejected.

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Issues: Whether the attachment and recovery proceedings initiated against the petitioner, before final adjudication of the excise demand, were liable to be quashed.

Analysis: The assessment memorandum and the subsequent demand notice were treated as sufficient basis for recovery, especially where the demand had arisen from the assessment proceedings and the petitioner had already issued cheques towards the amount, of which some were dishonoured. The Court held that the dispute regarding the demand and the proposed penalty could be properly pursued before the Customs and Central Excise authorities and found no ground to interfere with the attachment at that stage.

Conclusion: The attachment and recovery proceedings were upheld and the petition was rejected.

Ratio Decidendi: Where an assessment memorandum and demand stand against an assessee, recovery proceedings and attachment may be sustained pending adjudication of the dispute before the competent excise authorities.

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