9911796707
TMI Blog2008 (10) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... in manufacture of ferrous and non-ferrous ingots (aluminium alloy ingots), for which raw material of aluminium scrap, silicon scrap and copper scrap are required. The petitioner availed Cenvat credit for the inputs under the Cenvat Credit Rules, 2004. The inputs received were entered into a register. On physical verification conducted by the representatives of the Department on 15.9.2008, certain records, hard disc and floppy were seized. Closing stock was also checked up. Case of the petitioner was that there were no irregularities and the raw material was duly entered in the books of account. The petitioner made a request for release of the seized goods. The petitioner was required to deposit Rs.11 lac towards Central Excise Duty, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which does not require any detailed investigation. It is well settled that power of effecting seizure is coupled with duty. There is no explanation whatsoever as to why for the period of more than one month no further investigation has been made. On being pointedly asked from learned counsel for the respondents, they have expressed their inability to make any statement when the investigation will be completed beyond saying that the respondents are entitled for a period of six months under the rules. 7. Even though, we do not express any opinion on merits at this stage, the question of prima facie case for confiscation is required to be examined with a view to decide whether stand of the respondents for continuing to detain the goods exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shing undertaking to pay the duty or other dues which may be found due without furnishing any cash security or bank guarantee for the value of the goods. 9. We find that the stand of the respondents in not finalizing the issue for a period of one and a half months and in not specifying any period for completing the investigation when facts were already on record, does not rule out mala fides on the part of the concerned officers. No doubt, the excise authorities have jurisdiction to conduct search, seizure or investigation, such power has to be exercised reasonably and for the purpose for which the power is conferred. When serious invasion on Fundamental Rights of citizens is involved, the authorities are not expected to adopt unreasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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