TaxTMI 
TaxTMI 
1965 (1) TMI 3
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....h the Central Excise authorities. Before clearance of goods manufactured in the factory, the petitioner company used to submit in the prescribed form, known as A.R. 1 form, particulars of goods to be cleared. The entries in the forms were checked, the duty payable was assessed and used to be paid by debit adjustment in the current account. 3.During the periods June 1, 1961 to September 25, 1961 and September 26 to April 30, 1962, the petitioner company obtained clearance of quantities of glass and glassware and the excise duty thereon was realised by debiting the current account of the petitioner company. The last item of debit for the first period mentioned above was made on September 25, 1961 and the last item of debit for the second period mentioned above was made on April 30, 1962. 4.Thereafter, on November 16, 1962 and January 16, 1963, there were two notices of demand sent to the petitioner company by the respondent No. 2 to the following effect : (a) Notice dated November 16, 1962. "Notice of Demand for duty under Rule 9B of the Central Excise Rules, 1944. Take notice that on behalf of Central Government, I hereby demand payment by you of the sum of Rs. 35,125....
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.... which we charged to the party. This has resulted in the belief on the part of the Central Excise Officer verifying the price list that we have charged more prices to the customers than that declared by us in the price list. Without prejudice to the above contention, we submit for your information that the verification of prices was a mere eyewash, being carried out in an unsystematic and perfunctory manner" X X X X X. 6.On receipt of the second notice also, the petitioner made similar representation to the respondent Assistant Collector. Along with each of the objections the petitioner company submitted illustrative instances, where the calculation of differential duty had been wrongly made. The Assistant Collector of Customs replied to both the objections separately in the following identical language :- "You are requested to cite specific cases in which, according to you, the price verification has been incorrectly done within seven days of receipt of this letter. The matter will be re-examined on receipt of the information from you. In case of non-receipt of the information desired within the time noted above, it will be presumed that you have no case to cite and final....
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....ing of the two notices of demand and for a Writ of Mandamus upon the respondents calling upon them to recall, cancel or withdraw the demands and obtained this Rule. 10.The respondents contested the Rule by filing an affidavit-in-opposition. In paragraphs 6 and 7 of the affidavit-in-opposition, it is stated as herein below set out :- "There is a practice in the department whereby manufacturers of excisable goods, whose products are assessed on value according to Section 4 of the Central Excises and Salt Act, submit price lists of products from time to time indicating discounts, if any. For the purpose of assessment during the period from June, 1961 to September, 1961, the petitioner submitted 70 price lists (No. 1-70) stating the prices of various products at which the goods would be sold. In each of those 70 price lists the petitioner gave a declaration to the effect 'We bind ourselves to pay differential rate of duty if found otherwise on verification'. After submitting the aforesaid 70 price lists (Price list No. 70 being submitted on 25th August, 1961) the petitioner submitted a price list consolidating the prices, mentioned in the 70 price lists stating the prices as up t....
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....se a colour of provisional assessment to the assessments, which had not originally been marked as such. This appears from documents collectively marked Annexure A to affidavit-in-reply, from which I quot relevant portions below. On December 15, 1962, the Manager of the petitioner company wrote the following letter to the respondent No. 2 :- "It has been observed with greatest displeasure that certain A.R. 1's for the period from July, 1961 to March, 1962, which had not been marked 'Provisional' originally have been marked 'Provisional' by you recently." "Would you therefore let us know as to when those A.R.I's were so marked by you. In future, please note that when you make any addition or alteration in any record or document, please obtain management's prior permission". To that letter the Respondent No. 2 sent the following reply on December 18, 1962 :- "As desired I am to inform you that certain A.R. 1's from period July, 1961 to March, 1962, which was originally not marked PROVISIONAL before the word assessment memorandum in the said forms, have been so marked by me on the 19th November, 1962. This was so marked by me, only on the copies of the said forms retaine....
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....cturer, curer or owner shall execute a bond in the proper Form, with such surety or sufficient security, in such amount, or under such conditions as the Collector approves binding himself for payment of the difference between the amount of duty as provisionally assessed and that as finally assessed on receipt of such complete information or proof therefor, or of results of chemical or other tests made in respect thereof. (3) The Collector may permit the manufacturer, curer or owner of warehoused goods to enter into a general bond in the proper Form with such surety or sufficient security in such amount or under such condition as the Collector approves for assessment of any goods provisionally from time to time : Provided that, in the event of death, insolvency or insufficiency of the surety or where the amount of the bond is inadequate, the Collector may, in his discretion, demand a fresh bond, and may, if the security furnished for a bond is not adequate, demand additional security. (4) The goods provisionally assessed under sub-rule (1) may be cleared for home consumption or export in the same manner as the goods which are not so assessed. (5) When the duty leviable o....