Bona fide destruction of unfit stock cannot attract duty or penalty where the department failed to act on prior notice.

Prior notice that stock had become unfit for human consumption and was to be destroyed, followed by bona fide destruction after departmental inaction, could not justify excise duty or penalty on the destroyed goods. The Court held that the Department could not rely on its own failure to respond to the request for presence at destruction to fasten liability, and the writ petition was not barred by alternate remedy in these circumstances. The show cause notice was quashed, and no duty or penalty was demandable on the destroyed stock.

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Issues: Whether the show cause notice demanding duty and penalty on destroyed stock of goods alleged to be unfit for human consumption was liable to be quashed in writ jurisdiction, and whether the Department could invoke the alternate remedy rule in the facts of the case.

Analysis: The petitioners had repeatedly informed the Department before destruction that the stock was old, unfit for human consumption, and intended to be destroyed, and they had requested departmental presence at the time of destruction. The Department neither took timely action nor responded to the request, but issued the notice only after learning that the goods had already been destroyed. On the facts, the goods had become unmarketable and unfit for consumption, and the petitioners had acted bona fide in complying with the procedure contemplated for destruction of unusable goods. In these circumstances, the Department could not rely on its own inaction to fasten duty and penalty, and the writ petition could not be rejected on the ground of alternate remedy.

Conclusion: The show cause notice was quashed and no duty or penalty could be demanded on the destroyed goods.

Ratio Decidendi: Where a manufacturer gives prior notice that goods have become unfit for human consumption and seeks to destroy them, bona fide destruction after departmental inaction cannot be the basis for demanding excise duty or penalty, and the existence of an alternate remedy will not bar writ relief in such circumstances.

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