M/S Besco LTD vs. Union Of INDIA And Ors.

Facts

The petitioners, M/s. Besco Limited & Anr., filed a writ petition seeking two reliefs: withdrawal of an impugned notice dated September 24, 2021, issued under Section 11(2)(i) of the Central Excise Act, 1944, and permission to pay their central excise liability, including interest and penalty, in 24 equal installments as proposed in their letter dated September 30, 2021. The revenue authorities, represented by the Union of India and CGST authority, were the respondents. The dispute involved an unspecified amount of central excise liability. The procedural history leading to the writ petition is not detailed, but the impugned notice appears to have led to an attachment of the petitioners' bank account.

Held

The Court disposed of the writ petition by observing that the petitioners shall pay the due amount in question as per the mode of payment of installments referred to in the communication dated February 10, 2022, issued by the GST authority. The respondent concerned was directed to withdraw the impugned order of attachment of the bank account dated September 24, 2021, within 72 hours from the date of communication of the order and to allow the petitioners to operate their bank account. The Court's decision was based on the communication from the GST authority expressing willingness to accept the installment proposal. The issue of withdrawal of the impugned notice was implicitly addressed by allowing the installment payment and directing the withdrawal of the attachment order. No specific issue was expressly left undecided.

Key Issues

1. Whether the petitioners are entitled to have the impugned notice dated September 24, 2021, issued under Section 11(2)(i) of the Central Excise Act, 1944, withdrawn? 2. Whether the petitioners are entitled to pay their central excise liability, including interest and penalty, in 24 equal installments as per their proposal? The petitioners argued for the withdrawal of the impugned notice and for permission to pay their dues in installments, based on their proposal. The revenue authorities, through a communication dated February 10, 2022, indicated their willingness to accept the petitioners' proposal for payment in installments, subject to certain terms and conditions mentioned in that communication. No specific arguments or reliance on authorities were recorded for the revenue authorities beyond this communication.