TMI Blog2005 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... and are bound by statutory law; the powers that they exercise are granted to them by the statute and there are no powers de hors the statute - Therefore, without entering into the controversy as to whether payment was voluntary or otherwise, the funds recovered by the respondent authorities are required to be refunded forthwith - 6160 OF 2005 - - - Dated:- 10-5-2005 - D.A. MEHTA AND H.N. DEVANI, J.J. Ramnandan Singh for the Petitioner. Jitendra Malkan for the Respondent. JUDGMENT D.A. Mehta, J.- Mr. Ramnandan Singh, the learned Counsel prays for permission to amend the prayer clause. Permission granted. Amendment to be carried out immediately. 2. Rule. Mr. Jitendra Malkan, the learned Counsel for the respondents wai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. A sum of Rs.12,61,622 has been realised by encashing some of the cheques forcibly obtained from the petitioner. 5. On 7th April 2005, this Court while issuing notice had directed the respondent authorities not to deposit and encash the following cheques: Cheque No. Drawn on Amount Rs. 279441 Central Bank of India 2,00,000 279442 Central Bank of India 2,36,907 6. Heard Mr. Ramnandan Singh, the learned Advocate for the petitioner. He has reiterated the averments made in the petition and submitted that the petitioner is ready and willing to pay duty (including interest and penalty) which may become payable upon the petitioner being served with a show-cause notice, given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The position in Law is well-settled that liability to excise duty can arise on the production/manufacture 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 such 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of respondent authorities in adjusting a sum of Rs. 7,61,000 against outstanding Modvat credit is also not sustainable in law and is accordingly quashed. The respondent authorities are directed to refund the sum of Rs.12,61,622 being the total sum recovered by way of encashment of various cheques up till now to the petitioner forthwith, but not later than a week from today i.e., on or before 17-5-2005, without waiting for a certified copy of the order or a writ of this Court. Similarly, the respondent authorities shall permit the petitioner to reverse the entry regarding outstanding Modvat credit within the aforesaid time frame. Similarly, the respondent authorities are also directed to return amounts the unencashed two cheques bearing N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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