( 1 ) IN this batch of seven writ petitions, the petitioners challange the show cause notices issued to them by the Collector of Central Excise, the second respondent, requiring them to show cause as to why their respective plant, machinery, land and building utilised in the manufacture, etc. of the fabrics as mentioned in the show cause notices should not be confiscated to the Government under Rule 173q (2) of Central Excise Rules, 1944 (for short the Central Excise Rules ), and further that penalties should not imposed on them under Rules 9 (2) and 172q of the Rules. There is also a challenge to the show cause notices a; to why a penalty should not be imposed under rule 209a of the Rules. The petitioners seek setting aside of the show cause notices. It may at once be noticed here itself that contravention of the Rules is regarding levy and collection and additional duties of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (for short the Additional Duties Act ) as applicable by virtue of section 3 of the Additional Duties Act. The notices call also upon the petitioners to show cause as to why additional duties of excise and cess payable on certain quantity of processed man-made fabrics should not be demanded from them under rule 9 (2) of the Central Excise Rules read with section 11 A of the Central Excises and Salt Act, 1944 (for short the Central Excises Act ), and further as to why differential additional duties of excise payable on goods of certain value cleared within a certain period as per details given in the notices should not be demanded from them under section 11a of the Central Excuses Act. There is, however, no challenge to this part of the show cause notices. The petitioners say they are engaged in the processing of cotton fabrics and also man-made fabrics. They receive grey fabrics which may either be cotton fabrics, polyester fabrics or fabrics having polysster blend, and that under section 3 of the Additional Duties Act, additional duy of excise is leviable in respect of these goods as per rates prescribed. The claim of the petitioners, in short, is that invoking of the penal M/s. Sanghi Textiles Processors. Pvt. Ltd. and Ors. (CW 327/90), M/s Karan Textile Industries Pvt. Ltd. and Ors. (CW 787/90), M/s. Dilip Textiles (P) Ltd. and Anr. (CW 2974/90), M/s Sri Ram Mill and Anr. (CW 2975/90), M/s Hyderabad Silk Mills Pvt, Ltd. and Anr. (CW 3895/90 ). M/s S. Kumars Ltd. and Anr. (CW 1185/91) Vs. Union of India and others provisions of the Central Excise Rules by the respondents under the show cause notices is illegal, void and unconstitutional as under section 3 of the Additional Duties Act, the only provisions of the Central Excises Act and Rules made thereunder apply in relation to the levy and collection of additional duty of excise under the Additional Duties Act which pertain to the levy and collection of the duties of excise under the Cenral Excises Act. They say that any tax statute has to provide for the charge, viz. , the taxable event and the quantum of tax and in the absence thereof, there will be no liability for tax, and that if a penalty is levied for infraction of the tax laws, as a deterrent, to ensure against evasion of tax. the taxation statute should expressly provide for charge for penalty. In the absence of such a provision under the Additional Duties Act, the petitioners say, the mere liabilty to duty alone cannot carry with it a liability to penalty.

( 2 ) TO appreciate the argument of the petitioners, it will be appropriate at this stage itself to set out the relevant provisions of the Additional Duties Act. This Act provides for levy and collection of additional duties of excise on certain goods and for the distribution of a part of the net proceeds thereof among the States in pursuance of the principles of distribution formulated and the recommendation made by the Finance Commission from time to time. Under section 2 (a), "additional dut