2009 (6) TMI 31

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....2/97. Vide Notification No.41/99-Central Excise, dated 26.11.1999, it is exempted from payment of excise duty. Intending to avail the benefit of the notification, it has filed an undertaking with the second respondent to the effect that not less than 2/3rd of the green leaves used in manufacture of black tea in the factory are purchased from growers having holding not exceeding 10 Hectares under tea cultivation. 2.2. When the petitioner received show cause notice from the Superintendent, Gudalur Range, demanding duty, the petitioner was informed that the undertaking referred to in the notification should be filed every financial year. Accordingly, the petitioner despatched the undertaking, dated 30.03.2001 for the financial year 2001-200....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ment of Rs.40,022/-. The petitioner also sent letters to the second respondent, explaining its position and seeking for payment of cess in instalments. 2.5. Under the circumstances, the petitioner has received the impugned notice, dated 10.12.2004, from the second respondent, calling upon to pay an amount of Rs.3,95,654/-. Hence, this Writ Petition. 3. Second respondent has filed a counter, stating as follows : 3.1. The petitioner is due for payment of arrears of Rs.3,11,632/- (Rs.40,000/- since paid) as confirmed in four different orders of demand notices issued to it by the Divisional Office as well as the Range Office to pay the dues failing which action was proposed to be taken under Section 142 of the Customs Act,1962 to attach mov....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vacated and as such the respondents can pursue the recovery proceedings, as per the orders. Therefore, the Writ Petition is liable to be dismissed. 4. Learned counsel for the petitioner has relied upon a decision of the Supreme Court in The Cement Marketing Co.of India Ltd.v. The Assistant Commissioner of Salex Tax, 45 STC (SC) 197, wherein it is held as follows : "The assessee effected certain transactions of sale of cement in accordance with the provisions of the Cement Control Order and deducted from the price shown in the invoices sent to the purchasers, the amount of freight, which was included in the "free on rail destination railway station price" and which was paid by the purchasers : Held, that the amount of freight formed part o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the Act and ordering interest on the amount of duty under Section 11 AB (1) and also imposing penalty of Rs.10,000/- under Section 38A read with Rule 25 of the Central Excise Rules,2002. Also, on 08.08.2003, the second respondent passed another order, confirming the demand of cess on tea at Rs.47,632/- and Rs.53,309/- under Section 11 A (1) of the Act read with 25 (3) of the Tea Act and Rule 4 of the Rules,2002, and also imposing mandatory penalty equivalent to cess under Section 11 AC of the Act read with Rule 25 of the Rules,2002. Similarly, on 24.03.2004, the second respondent confirmed the demand of cess on tea at Rs.1,02,189/- and Rs.61,011/- under Section 11 A(1) of the Act read with 25 (3) of Tea Act and Rule 4 of the Rules, imposin....