TORRENT LABORATORIES PVT LIMITED, AHMEDABAD Vs. UNION OF INDIA

JUDGEMENT

(1.) On October 6, 1988 Rule 57-1 of the Central Excise Rules, 1944 which provides for recovery of MODVAT credit wrongly availed of or utilised in an irregular manner has been partially amended. While amending that Rule, did the Legislature manifest an intention to grant amnesty to all these manufacturers who were alleged to have wrongfully availed of the credit Did the legislature intend to demolish or destroy all that was done under the unamended provision of the Rule These and other common questions of fact and law arise in all these petitions. Hence, at the request and with the consent of the learned Counsels appearing for the parties, all these matters are being heard together and are being disposed of by this common judgment and order.

(2.) The undisputed facts pertaining to all these petitions are that the petitioners are manufacturers of one or other article which is subject to excise duty under the relevant provisions of the Central Excises & Salt Act, 1944 (for short 'the Act') and the Central Excise Rules, 1944 (for short 'the Rules'). The petitioners have taken benefits of MODVAT scheme contained in Rule 57-A to 57-P of the Rules believing that they were entitled to take credit for certain 'inputs'. The petitioners utilised these 'inputs' and manufactured their end product. The petitioners took credit for the 'inputs' utilised by them for different periods. According to the Department, these manufacturers were not entitled to take credit and they had taken credit wrongly. Hence different show cause notices were served upon different manufacturers calling upon them to show cause as to why they should not be asked to reverse the credit or if necessary to refund the amount of credit wrongly availed of. In some of the cases, the petitioners have replied to the show cause notices and the Assistant Collector concerned has passed order after hearing the petitioners. In some cases, the petitioners have rushed to this Court on receipt of the show cause notice itself and without replying to the show cause notice and without waiting for the adjudication order by the appropriate excise authority.

(3.) The details with regard to the show cause notice issued, period covered by the show cause notice and the date of the order passed by the Assistant Collector in different petitions, together with the details of article manufactured by the petitioner concerned are mentioned hereinbelow : Sr. No.No. of Spl.C.A.ProductsDate of SCNPeriod covered in SCNDate of impugned order 123456 1.4233/89Detergent powder of LAB & other Inputs.22-3-88April 1986 Oct. 198614-6-89 2.4234/89-do-18-3-88-do-14-6-89 3.4235/89-do-14-3-88-do-14-6-89 4. 6457/89-do-15-10-89-do-14-6-89 5. 6934/88Steel Strip of Chap. 72 out of imported Steel sheets.26-5-88 27-5-88April 86 to March 87 June 87 to July 87- 6. 3103/89Aluminum billets out of Aluminium ingots18-8-88 2-2-88 3-10-88April 87 to Dec. 87 Mar. 86 to July 86 Jan. 88 to April 888-3-89 7. 8572/88Various Chemicals of Chap. 28 & 292-2-886-3-87 to 14-12-87- 8. 2731/89Asbestos Cement Products out of imported asbestos fibre and other inputs23-6-88May 8815-3-89 9. 6932/88Medicine18-12-87 13-6-88March 86 to Aug. 87 Sept.87 to Feb. 8823-5-88 10. 1219/89Bng. Products of various inputs18-2-88 19-5-88June 87 to Dec. 87 Jan. 88 to March 8814-12-88 14-12-88 123456 30-8-88 21-11-88Apr. 88 to June 88 June 88 Sept. 8814-12-88 11. 3934/89Detergent powder out of sulphuric acid & other inputs16-5-88May 8615-3-89 12. 3935/89Detergent powder out of sulphuric acid & other inputs16-5-88Nov. 86 to Feb. 8715-3-89 13. 3936/89-do-27-6-88Jan. 88 to May 8820-3-89 14. 3937/89-do-16-5-88March 86 to Feb. 8815-3-89 15. 3887/89-do-24-3-88Nov. 87 to Jan. 8815-3-89 16. 3888/89-do-17-12-87July 87 to Oct. 8715-3-89 17. 3889/89-do-24-3-88Aug. 87 to Jan. 8815-3-89 18. 3890/89-do-17-12-87March 86 to Oct. 8615-3-89 19. 3891/89-do-24-3-88 8-7-88 24-3-88Jan. 88 Feb. 88 to May 88 Nov. 8715-3-89 15-3-89 20. 3892/89-do-21-12-87 8-7-88Jan. 88 Mar. 86 to Oct. 87 Feb. 88 to15-3-89 15-3-89 21. 3893/89-do-24-12-97 24-3-88May 88 to Oct. 87 Nov. 87 to Jan. 8815-3-89 15-3-89 22. 4236/89-do-19-10-88April 88 to July 8815-3-89 23. 4237/89-do-21-11-88June 88 to Oct. 8820-3-89 24. 4238/89-do-18-11-88 1-3-89June 88 to Sept. 8815-3-89 13-4-89 25. 26.4239/89 4240/89-do--do-18-11-88 18-11-88 1-3-89June 88 to Sept. 88 June 88 to Sept. 8815-3-89 13-4-89 27.4241/89-do-17-11-88 1-3-89June 88 to Sept. 8815-3-89 14-4-89 28.4242/89-do-18-1-88 1-3-89June 88 to Sept. 8815-3-89 13-4-89 123456 29.4243/89-do-18-11-88 1-3-89June 88 to Sept. 8815-3-89 13-4-89 30.4244/89-do-27-2-8913-4-89 31.3102/89Aluminium billets out of Aluminium ingots.25-1-89April 87 to March 88 32.4903/89Synthetic Organic dye stuffs.3-12-86---24-10-88