TMI Blog2005 (5) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in business of processing of textiles, dyeing and printing, has approached the Court challenging the arbitrary and high handed action on part of respondent No. 3 in initiating recovery of alleged central excise dues which the petitioner firm is not liable to pay in accordance with law. It is averred in the petition that in connection with some inquiry, in case of one Avinash Exports, petitioner No. 2, a partner of the petitioner firm, was required to remain present before the respondent authorities on 12th August 2004 and his statement was recorded. It appears that, during course of inquiry, the petitioner was given to understand that Avinash Exports had claimed 35 rebates for duty paid on exports (which are doubtful) by submitting fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o avoid interest liability and penalty, as provided under Sections 11AB and 11AC of Central Excise Act, 1944 (the Act), and that the same have been deposited voluntarily against wrongly availed Cenvat credit. The basis of the averment is stated to be the statement made by partner of the petitioner firm which is annexed it Annexure "R-1". In the following paragraphs, various averments are made to emphasize the fact that the deposit of cheques was out of volition of the petitioner and that there was no coercion in so far as the respondent authorities are concerned. 7.Mr. Singh appearing for the petitioner has submitted that the petitioner wanted to file affidavit in rejoinder, but as the Court has not granted time, he has been constrained t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned counsel was not in a position to point out as to what were the transactions which were not reflected in the records maintained by the petitioner and which had been discovered by the respondent authorities. 10.In this connection, it is necessary to reproduce paragraph No. 17 of the affidavit in reply dated 18th April 2005 :- In view of the above facts, it appears"17. that M/s. Century Dyg. Ptg. Mills have not received any grey fabrics for processing from M/s. Avinash Exporters and have not supplied any processed fabrics to M/s. Avinash Exports and has done only paper transaction to enable M/s. Avinash to claim fraudulent rebates. M/s. Avinash Exports has availed fraudulent rebate claims on the strength of bogus export doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 are no powers dehors the statute. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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