(1.)Leave granted in S.L.P. (Civil) No. 16223 of 1985.
(2.)The common question raised in all these cases relates to the applicability of Rules 10 and 10A of the Central Excise Rules. The cases were heard together with the consent of learned Counsel for parties and they are being disposed of by this common judgment. For the sake of brevity the relevant facts are stated with reference to Civil Appeal No. 2132 of 1994.
(3.)M/s. Kolhapur Sugar Mills Limited, a holding company, had been in the business of production of sugar at Kolhapur since the year 1933-34. The appellant M/s. Kolhapur Canesugar Works Ltd., was registered as a subsidiary of the said holding company in the year 1972. The holding company bifurcated their activities whereby the activity pertaining to manufacture and sale of sugar was transferred to the appellant company by a Resolution passed in their Extraordinary General Meeting held on 19th October, 1972. Consequent upon this change the appellant, on 9th October, 1973 applied to the Assistant Collector, Central Excise, Kolhapur for L-4 licence for manufacture of sugar. In the covering letter the appellant had stated that they had taken the sugar undertaking from the holding company. It has also stated in the letter that the holding company was having L-4 licence during the year 1972-73 and that they had manufactured sugar during that season and were having their sugar stocks in the godowns now belonging to the appellant. On receipt of the letter necessary certificate was issued to the appellant to start business on 15-11-1973 pending issue of L-4 licence. A fresh L-4 licence authorising the appellant to manufacture sugar during the year ending 31st December, 1973 was issued on 6th December, 1973 in pursuance of their application.