@JUDGMENTTAG-ORDER
A.R. Tiwari, J.@mdashThis is a petition under Article 226/227 of Constitution of India.
2. The facts lie in a narrow compass. The petitioner is the company incorporated under the Companies Act, 1956. It uses Mono Ethylene Glycol (MEG) as a raw material i.e. input for the purpose of manufacture of polyester yarn. The aforesaid MEG was excisable under the old tariff item No. 68 vide Notification No. 201/79 dated 4.6.1979. The Government of India allowed the set off to be given on the ground of duty paid by the manufacturer on raw material subject to excise duty, under old tariff item No. 68 if that raw material was used in the manufacture of final product. (Annexure-A). The petitioner thus, became entitled to claim set off of duty. The petitioner complied with the requisite conditions as laid down in the Notification and submitted monthly return in Form RT 12. The Respondent No. 2 (Additional Collector) however, issued the show-cause notice dated 10/12.4.1989 (Annexure D) to the petitioner, to show cause as to why the duty be not demanded/recovered u/s 11A of the Central Excises and Salt Act, 1944 and why a penalty should not be imposed under Rule 173Q of the Central Excise Rules, 1944. The petitioner submitted the preliminary objection on 22.5.1989 (Annexure E) contending that the issuance of notice was barred by time imprimis and as such, the proposed action was without jurisdiction. The authority, however insisted upon reply as is clear by letter dated, 11.7.1989 (Annexure F). Aggrieved, the petitioner has filed this writ petition.
3.1 have heard both sides.
4. It is not disputed before me that the petitioner has right to contest the notice also on question of limitation.
5. As this petition is directed only against the show-cause notice, I find it unnecessary to examine the merits of the matter.
6. In the result, 1 dispose of this petition with directions as under:
a) The petitioner is granted liberty to file reply to the show-cause notice (Annexure-D) within a period of one month from today. He shall also have freedom to raise all contentions against the aforesaid notice including the objections with regard to the bar of limitation. In other words, all contentions projected in this writ petition shall also be treated as open and litigable.
b) The Respondent No. 2 or any other authority, for this purpose shall consider the objections of the petitioner and shall also specifically decide the plea of bar of limitation against the action as proposed in the show cause notice.
c) If the Respondent No. 2 or the competent authority as the case may be, elects to decide the matter against the petitioner, he or it shall pass the reasoned order in that behalf, and in that event the petitioner shall be at liberty to pursue appropriate remedy in this behalf.
7. With the aforesaid directions, this petition stands finally disposed of but without any orders as to costs. The outstanding amount of security if any, shall be refunded to the petitioner after due verification.
