1968 (8) TMI 54 - HC - Central Excise

Summary

Issues: Interpretation of Section 11 of the Central Excise and Salt Act, 1944 regarding the issuance of a certificate for recovery of dues.

In the judgment delivered by Justice Gopal Rao Ekbote of the High Court of Andhra Pradesh, the primary issue revolved around the interpretation of Section 11 of the Central Excise and Salt Act, 1944, specifically concerning the conditions necessary for the issuance of a recovery certificate by the Central Government. The petitioner argued that under Section 11, the Central Government must first attempt to deduct the amount payable from any money owed by the person or recover it by attaching and selling excisable goods before issuing the certificate. However, Justice Gopal Rao Ekbote dismissed this contention, emphasizing that the language of Section 11 does not mandate such a prerequisite. The judge highlighted that the use of the term "may" in the section indicates that the actions of deduction or attachment are discretionary, not mandatory. The judge clarified that the officer has the discretion to choose between deducting the amount from available funds or attempting to attach and sell excisable goods, but such actions are not obligatory before issuing the certificate. The judgment emphasized that the plain language of the section does not support the petitioner's interpretation, and the issuance of the certificate can proceed without prior attempts at deduction or attachment of goods.

Furthermore, the judgment addressed the absence of any other substantial contentions raised during the proceedings. As no additional arguments were presented, the writ petition was deemed unsuccessful and subsequently dismissed with costs imposed on the petitioner. The costs included an advocate's fee of Rs. 100, to be paid by the petitioner to the respondent. The judgment provided a detailed analysis of the statutory provision in question, clarifying the discretionary nature of the actions outlined in Section 11 and emphasizing that such actions are not prerequisites for the issuance of a recovery certificate by the Central Government.