B.P.Jeevan Reddy, C.J. - (1.) This writ petition is filed questioning the validity of a show cause notice dated 22-5-1982 issued by the Collector, Central Excise, Allahabad, under Section 35A of the Central Excise Act - as it stood at the relevant time.
(2.) The petitioner Triveni Sheet Glass Works Ltd. is engaged in the manufacture of sheet glass. Sheet glass is subjected to excise duty under Schedule I to the Act. The petitioner commenced production in January, 1976. For selling its products it established its own depots in several cities of the country. Some sales were also effected at the factory. In the year 1976, the petitioner submitted a price list for approval, in which he disclosed the wholesale cash price for each of its sale depots separately. He wanted different wholesale price to be fixed for goods sold at each of its depots. The petitioner was called upon to furnish certain material relating to cost of production, sale vouchers issued by the depots, sale price at the factory and so on. On a consideration of the material furnished by the petitioner, the Collector, Central Excise directed that since some goods were sold at the factory gate itself, the price charged at the gate shall be the wholesale cash price. Accordingly, the Assistant Collector called upon the petitioner through his letter dated 18-5-1976 to file a fresh price list, which the petitioner did under protest. He requested the Assistant Collector either to revise his order or to pass an appellate order so as to enable him to pursue the remedy of appeal. The Assistant Collector replied that his letter dated 18-5-1976 may be treated as an appellate order. The petitioner, however, did not file any appeal or pursue the matter further. He submitted to the directions of the Assistant Collector and furnished the price list on the basis of ex-factory wholesale price, which was provisionally approved by the Assistant Collector through his letter dated 5-7-1976. The petitioner was removing the goods and selling them both at the factory gate and also at its depots.
(3.) A fairly large part of the petitioner's products was sold to a company called Hindustan Safety Glass Works Ltd., Allahabad. Indeed, 22% of the petitioner's products was sold to this company and 3% of the production was sold to certain dealers at the factory gate, while 55% of the products was sold through its depots.;