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Supreme Court Of India
P.N. BHAGWATI, CJI., G.L.OZA,M.M.DUTT, JJ.
Rita Textiles - Appellant
Versus
Union of India - Respondent
Civil Misc. Petns. Nos. 26341-48 of 1986 (In W.P. Nos. 510-511, 515-516, 526, 687, 1191, 2782/83) with C.M.P. No. 26556/86 (In W.P. No. 525/83) with C.M.P. No. 26929/86(In W.P. No. 946/83)
Decided On, 09/23/1986
Amount of Arrears - Liberty to Encash Bank Guarantee - Requested for time to make payment on ground that Textile Industry - Payment of arrears of excise duty is concerned, the respondents will be at liberty to encash the Bank Guarantee which has been given by petitioners for 50% of the amount of arrears, if they have not already encashed the same - With regard to the balance of arrears, learned counsel for the petitioners has requested for time to make payment on the ground that Textile Industry is in a very difficult position and unless some time is given, the textile units may face closure resulting in loss of production and unemployment – Held, We would, grant time to the petitioners to pay off balance of arrears of excise duty - Fifty per cent of such balance shall be paid on or before 15th March and remaining part of the balance shall be paid by petitioners on or before 15th September - In view of this Order granting time, respondents will raise attachments levied on goods of some of textile units in question - If petitioners commit default in payment of one half of balance on or before 15th March entire amount of balance shall become due and payable forthwith - Petitioners also undertake to this Court through their counsel that they will not alienate or dispose of or deal with their assets except in the usual course of business - Writ petitions dismissed
Judgement
ORDER :- The writ petitions are dismissed since they are covered by the decision of this Court in "Union of India v. Modi Rubber Ltd." given on 18th August, 1986 : (reported in AIR 1986 SC 1992).
2. So far as the payment of arrears of excise duty is concerned, the respondents will be at liberty to encash the Bank Guarantee which has been given by the petitioners for 50% of the amount of arrears, if they have not already encashed the same. With regard to the balance of arrears, learned counsel for the petitioners has requested for time to make payment on the ground that the Textile Industry is in a very difficult position and unless some time is given, the textile units may face closure resulting in loss of production and unemployment. We would, therefore, grant time to the petitioners to pay off the balance of arrears of excise duty. Fifty per cent of such balance shall be paid on or before 15th March, 1987 and the remaining part of the balance shall be paid by the petitioners on or before 15th September, 1987. In view of this Order granting time, the respondents will raise the attachments levied on the goods of some of the textile units in question. If the petitioners commit default in payment of one half of the balance on or before 15th March, 1987, the entire amount of the balance shall become due and payable forthwith. The petitioners also undertake to this Court through their counsel that they will not alienate or dispose of or deal with their assets except in the usual course of business.
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