TMI Blog2006 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from the petitioner be quashed and set aside. The petitioner further seeks direction against the respondent to return the dishonoured and under posited cheques as well as to refund Rs. 2,00,000/- to the petitioner, which had been recovered in violation of provisions of Section 11A of the Central Excise Act, 1944 (the Act). 3. The petitioner No. 1 is a company, registered under the Companies' Act. 1956 and is engaged in the business of doing job work by collecting raw material from different sources and printing of manmade fabrics. 4. It is averred in the petition that a summons dated 7th March 2005 was received by the petitioner, in relation to an inquiry against one M/s. Kashish Synthetics in relation to alleged evasion of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Mr. Jitendra Malkan, learned Advocates for the petitioners and respondent respectively. It is an admitted position, that by an order dated 6th May 2005 in the case of Century Dyeing and Printing Mills v. Union of India in Special Civil Application No. 3983 of 2005 [2006 (199) E.L.T 400 (Guj.)], this Court had decided a similar controversy. 7. In response to the notice issued by this Court, the Assistant Commissioner (Preventive), Head Quarter Surat-I has filed Affidavit-in-Reply stating that the petitioner has voluntarily deposited post dated cheques in advance along with TR-6 challans (towards return of the amount of duty) before issuance of show cause notice so as to avoid the departmental penal provisions and also reduce interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law is well settled that liability to excise duty can arise on the production/manufactur of the excisable goods or at best on removal of such excisable goods. In the present case, the respondent authorities have failed to show any such taxing event having taken place on the basis of which they would be entitled to effect sud recovery Any tax or duty can only be levied and collected in accordance with law, namely, backed by and supported by appropriate provision empowering the authority to undertake such an exercise of levy and collection. The respondent authorities must bear in mind that they are creatures of statute and are bound by statutory law; the powers that they exercise are granted to them by the statute and there are no powers d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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