2015 (12) TMI 806

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....ce made during the period 01.03.2005 to 16.06.2005 and recovery under Section 11A of the Central Excise Act, 1944 (for short 'the Act') along with interest under Section 11AB of the Act. 2. A few facts relevant for the decision of the controversy involved as narrated in the petition may be noticed. The petitioner installed a unit in the year 2003-04 at Baddi (Himachal Pradesh) for manufacturing various toilet preparations containing alcohol. Respondent No. 2 raised demand from the petitioner under Section 11A of the Act by holding that the goods manufactured by it fell under Chapter heading 33030050 and were liable to excise duty under the Act, ignoring the fact that the petitioner was not liable to pay excise duty under Medicina....

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....d Act of 1955. Hence, the petitioner filed a declaration with respondent No. 2 claiming exemption from duty leviable under the Act after obtaining the licence dated 04.06.2003 (Annexure P-2) from the State Excise Authorities.The petitioner during March, 2005 to June, 2005 procured liquor without payment of duty, but paid duty on finished goods leviable under the Act of 1955. However, respondent No. 2 insisted the petitioner to pay duty on its products under the Act which it did not pay because of the above reason. Hence, respondent No. 2 issued a show cause notice dated 28.03.2006 (Annexure P-5) and then slept over the matter till 24.09.2013 i.e. for around more than seven years on which date the matter was fixed for personal hearing. There....

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....hand, learned counsel for respondent No. 2 while refuting the above arguments prayed for dismissal of the petition. 6. As per entry No. 84 of List-I (Union List) of 7th Schedule of the Constitution of India, medicinal and toiletry preparations containing alcohol are made subject matter thereunder. Under Article 268 of the Constitution of India, the excise duty on such products is leviable by Government of India but the same has to be collected through the State. From the impugned order, it is evident that the petitioner manufactures various toiletry products containing alcohol. The stand of the petitioner is that it has already paid excise duty under the Act of 1955. Hence, prima facie it seems that demand of excise duty from the petitio....