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ADDL. D.G., DIRECTORATE GEN. OF CENT EXCISE Versus M/s. KIRAN MACHINES & ORS.

2015 (11) TMI 966 - SUPREME COURT

Validity of the show cause notice - Jurisdiction of Civil Court - Section 9 of the Code of Civil Procedure inasmuch as the Central Excise Act provides for complete machinery for adjudication of such disputes - suit filed against the show cause notice was premature and there was no cause of action to file such a suit when the said show cause notice was yet to be adjudicated upon - Held that:- The appellant had simply issued the show cause notice to respondent no. 1. This notice has been issued un .....

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a provision in challenging such an order by filing appeal. In this scenario, we are of the opinion that the jurisdiction of the Civil Court is clearly barred under Section 9 of the Code of Civil Procedure on the principles laid down by this Court in Dhulabhai vs. State of M.P.[1968 (4) TMI 64 - SUPREME COURT OF INDIA] - Even otherwise, when the matter was still at the show cause notice stage and no adverse order has been passed against respondent no. 1, there was no cause of action to file such .....

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al of Central Excise to respondent no.1 proposing to recover a sum of ₹ 27.32 lacs. This notice was issued under the provisions of the Central Excise Act. Instead of replying to the said notice, respondent no. 1 filed suit before the City Civil Court, Chennai challenging the validity of the said show cause notice on various grounds. Along with the suit, application under Order XXXIX Rule 1 and 2 of the Code of Civil Procedure,1908 was also filed seeking interim injunction to restrain the C .....

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ection 9 of the Code of Civil Procedure inasmuch as the Central Excise Act provides for complete machinery for adjudication of such disputes. (2) The suit filed against the show cause notice was premature and there was no cause of action to file such a suit when the said show cause notice was yet to be adjudicated upon. The High Court vide the impugned order dated 23.12.2005 has not decided the aforesaid contentions of the appellant on merits. Instead, it has remanded the case back to the Trial .....

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l Suit filed by respondent no. 1. After going through the same, we are in agreement with the submissions of Mr. Radhkrishnan on both the counts as mentioned above. The appellant had simply issued the show cause notice to respondent no. 1. This notice has been issued under the provisions of Central Excise Act. The validity of such a show cause notice could not be gone into in a suit filed by the noticee. As rightly pointed out by Mr. Radhakrishnan, various provisions of the Central Excise Act pro .....

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wn by this Court in Dhulabhai vs. State of M.P.[AIR 1969 SC 78], wherein this Court inter alia held as under: 32. Neither of the two cases of Firm of Illuri Subayya(1) or Kamla Mills(2) can be said to run counter to the series of cases earlier noticed. The result of this inquiry into the diverse views expressed in this Court may be stated as follows :- (1) Where the statute gives a finality to the orders of the special tribunals the Civil Courts' jurisdiction must be held to be excluded if t .....

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ay be relevant but is not decisive to sustain the jurisdiction of the civil court. Where there is no express exclusion the examination of the remedies and the scheme of the particular Act to find out the intendment becomes necessary and the result of the inquiry may be decisive. In the latter case it is necessary to see if the statute creates a special right or a liability and provides for the determination of the right or liability and further lays down that all questions about the said right a .....

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