- (1.) Shri R.C. Shukla, learned senior standing counsel appearing for the Central Excise Department had obtained instruction and had also produced before the Court a copy of the instruction received by him. On perusal of paragraph nos. 4 and 7 of the said instruction the Court finds that the stock verification of inputs and finished products of M/s. Mentha & Allied Products Ltd., Rampur (the petitioner) and M/s. Kapil Menthol, Rampur had been done and samples of non-dutiable and dutiable inputs and finished products had also been taken. Further the samples have been sent to M/s. CRCL, New Delhi for test report and the report is awaited. As the authorities have already taken stock verification of inputs and finished products and have also drawn samples of non-dutiable and dutiable inputs and finished products which have also been sent for test report we do not find any good ground to permit the Central Excise authorities to continue the detention of the inputs/raw materials.
(2.) The question of levy of duty or verification, if any, is still to be adjudicated upon by the Central Excise authorities. Under the garb of the detention order the authorities cannot be permitted to stop running of the business or manufacturing activities.
(3.) We, therefore, dispose of the writ petition with the direction to the respondents to permit the petitioner to utilise the detained inputs/raw materials upon furnishing security of rupees two lacs in the form of bank guarantee in favour of respondent no. 2. Upon furnishing the said bank guarantee, the order detaining the goods of the petitioner shall cease to have any effect. However, furnishing of the bank guarantee would be subject to the adjudication proceeding in which the petitioner shall cooperate.;