TaxTMI 
TaxTMI 
2003 (3) TMI 98
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....the Central Excise Act, 1944 is valid in law? 2.The respondent-assessee manufactures goods of copper and copper alloys. Shells and blanks manufactured by it were cleared without payment of excise duty and were captively consumed as in manufacture of pipes and tubes during the period March 1, 1981 to December 5, 1985. The Deputy Collector, Central Excise, Jaipur, issued notice to the assessee on March 6, 1986 invoking the proviso to Section 11A of the Central Excise Act, 1944 (for short, 'the Act') to show cause why duty amounting to Rs. 11,83,19,476.94 leviable on shells and blanks for the period between March 1, 1981 to December 5, 1985 should not be recovered, seized goods should not be confiscated and penalty should not be imp....
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....n the person chargeable with the duty which has not been levied or paid or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice : Provided that where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by such person or his agent, the provisions of this sub-section shall have effect, as if for the words 'Central Excise Officer', the words 'Colle....
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....ostulates satisfaction of the Collector on the question of fraud, collusion or wilful mis-statement or suppression of fact or contravention of any provisions of the Act and the Rules made thereunder for invoking a larger period of five years, i.e., from March 1, 1981 to December 5, 1985. It follows that such a notice could have been issued only by the Collector, Central Excise as such the impugned notice issued by the Deputy Collector is wholly without jurisdiction. This is the view taken by a Bench of two learned Judges of this Court in Collector of Central Excise v. Oil and Natural Gas Commission [1998 (103) E.L.T. 3]. This position is not seriously disputed by the learned senior counsel. 7.The contention that the impugned notice be tr....
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....uthority lower in rank than the Collector necessitating issuance of the Circular which reads as under : "Interpretation of amended Section 11A of the Central Excises & Salt Act, 1944 - Regarding. A reference is invited to the amendment carried out in Section 11A of the Central Excises & Salt Act, 1944 by the Amendment Act of 1985. In terms of the amended section, in cases where short levy etc. has occurred by reason of fraud, collusion etc., it is provided that instead of a 'Central Excise Officer', the 'Collector' may, within five years from the relevant date, serve notice on the person chargeable to duty which has not been levied or paid etc. A2. doubt has been raised as to whether the proper officer for serving t....