AI Structured Summary
Not yet generated for this judgment
Judgment
Pendse, J.—By this petition filed under Article 226 of the Constitution, the petitioners are seeking quashing of order dated February 5, 1983, the copy of which is annexed at Exhibit "H" to the petition. By the impugned order, the Assistant Collector, Central Excise, Bombay, directed the petitioners to pay a sum of Rs. 54,477.38 within three days from the date of receipt of the letter. The Assistant Collector threatened that failure would lead to action u/s 11 of the Central Excise Act. The amount was demanded in pursuance of order passed by the Superintendent, Central Excise, on October 31,1981. Mr. Punwani, learned counsel appearing on behalf of the petitioners, submitted that the impugned letter demanding amount from the petitioners no longer survives in view of the fact that the demand, which was based on the order passed by the Superintendent, Central Excise, was set aside in appeal by the Collector(Appeals). He submits that the order passed by the Superintendent, Central Excise, is not in existence and consequently, the enforcement of that order by the impugned letter must fail. Mr. Master, learned Counsel for the Department has approached the Tribunal against the order of the Appellate Authority. In case the Tribunal sets aside the order of the Appellate Authority, it will be open for the Department to recover the amount.
Accordingly, petition succeeds and rule is made absolute in terms of prayer clause(a). In the circumstances of the case, there will be no order as to costs. The bank guarantee furnished by petitioners to stand discharged.