Case Law Details
Sanmar Foundries Limited Vs Commissioner of Central Excise and Customs (Madras High Court)
Madras High Court held that that the scope of interference to a show-cause notice by a writ Court exercising its power under Article 226 of the Constitution of India, is very limited, barring few exceptions, like lack of jurisdiction or abuse of process of law, etc. Here, writ petition entertained as show cause notice issued on lack of jurisdiction.
Facts-
The appellant Company manufactures steel castings. The principal raw material for the final product is metal scrap. The factory premises of the appellant was inspected by the Anti-Evasion Wing of the respondent and in pursuance of such an investigation, the appellant had paid a sum of Rs.7.53 Crores to the respondent on various dates. However, the appellant claimed that this payment was made under threat or duress and that, they were not obligated to pay the amount and had filed a writ petition in W.P(MD)No.2026 of 2013, seeking for refund of the amount of Rs.7.53 Crore.
As against the order of the Single Judge, an Intra Court appeal was filed in which, a coordinate Bench had held that the respondents will have no authority to receive the payment when no ascertainment of the duties has been made by the Central Excise Officer and allowed the writ appeal and directed for a refund of the sum of Rs.7.53 Crores.
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