Hindustan Cables Ltd. Vs. Collector of C. Ex. - Court Judgment

Excerpt:

.....how m/s. hindustan cables stood in this matter since the proceedings were framed against m/s. metal smelting co. for failure to pay duty, to obtain a licence etc. he said that they have appealed because the collector held them to be the manufacturers and so, liable to pay the central excise duty on the antimonial lead ingot, and the central excise are pressing them for payment.3. we would like to record here that no action can be taken under the impugned order dated 2-2-1983 of the collector of central excise, calcutta for recovering any duty from m/s. hindustan cables ltd. this company was not charged with any malfeasance, nor were any notices issued to them. the people charged were only m/s. metal smelting. as no notice were issued to m/s. hindustan cables, they were not a party in the proceedings and the collector can demand no duty from them. no attempt to recover any duty under this order can be legal and m/s.hindustan cables are under no obligation to pay.the central excise department shall desist from recovering any duty from m/s. hindustan cables under the impugned order.

Judgment:

1. This appeal dated 2-5-1983 is filed by M/s. Hindustan Cables Ltd. against the Order No. 97(27A)81-Collr-7/83 dated 2-2-1983.

2. The learned Counsel for M/s. Hindustan Cables, Mr. R.N. Roy Choudhry was asked how M/s. Hindustan Cables stood in this matter since the proceedings were framed against M/s. Metal Smelting Co. for failure to pay duty, to obtain a licence etc. He said that they have appealed because the Collector held them to be the manufacturers and so, liable to pay the Central Excise duty on the antimonial lead ingot, and the Central Excise are pressing them for payment.

3. We would like to record here that no action can be taken under the impugned order dated 2-2-1983 of the Collector of Central Excise, Calcutta for recovering any duty from M/s. Hindustan Cables Ltd. This company was not charged with any malfeasance, nor were any notices issued to them. The people charged were only M/s. Metal Smelting. As no notice were issued to M/s. Hindustan Cables, they were not a party in the proceedings and the Collector can demand no duty from them. No attempt to recover any duty under this order can be legal and M/s.

Hindustan Cables are under no obligation to pay.

The Central Excise Department shall desist from recovering any duty from M/s. Hindustan Cables under the impugned order.