- (1.) This writ petition is directed against a show cause notice dated 4.4.1986 (as amended on 24.4.1986) issued in the name of the Superintendent (Prev.) Central Excise Kanpur Division-1.
(2.) The show cause notice avers the following facts: On the basis of information received, a team of Divisional Preventive Officers of Central Excise Division-1, Kanpur visited the premises of the petitioner M/s Kanpur Cigarettes (P) Ltd. engaged in manufacture of cigarettes falling under Tariff Item No. 11(2) of the First Schedule, to the Central Excises and Salt Act 1944, on 7.10.1985. They inspected the cigarette stocks and the books maintained by the petitioner. Several irregularities and infractions of rules were discovered, which constitute the basis of the impugned show cause notice. The show cause notice proposes three separate and distinct actions. As per the original show cause notice the actions proposed are: (i) Imposition of a penalty under Rules 9, 52A, 210 and 226 of the Centra Excise Rules 1944. (ii) Confiscation of seized 54 C.F.C. containing 6,48,000 Panama Virginia 20s Cigarettes under Rules 9,210 and 226 of the Central Excise Rules 1944. (iii) Demand of duty on 78,76,960 Panama Virginia 20s Cigarettes under Rule 9 of Central Excise Rules 1944.
(3.) However, by the corrigendum-notice dated 24.4.1986 Clause (iii) above was substituted. As modified (amended) Clause (iii) calls upon the petitioner to show cause why duty on 78,76,960 (numbers) Panama Virginia 20s cigarettes cleared otherwise than as provided under Central Excise Rules should not be demanded under Rule 9(2) of Central Excise Rules 1944 read with Section 11A of the Central Excises and Salt Act 1944. The corrigendum notice has also been issued in the name of the Superintendent.;