2008 (8) TMI 750 - AT - Central Excise

Summary

Issues involved: Classification of goods for concessional rate of duty under Notification 1/93-C.E., rejection of exemption claim, demand of duty without show cause notice, rejection of refund claim, requirement of show cause notice for demanding duty.

Classification and Exemption Claim:
- Appellant took over M/s. Balaji Iron and Steel in 1994.
- Filed classification list for concessional duty rate under Notification 1/93-C.E.
- Assistant Commissioner rejected exemption claim due to high value of clearances in 1993-94.
- Legal battles ensued with High Court and Supreme Court involvement.
- Appellants paid amount as per communication from Department.
- Filed refund claim citing various grounds.
- Lower authorities rejected refund claim based on High Court's decision.
- Appellants contended no show cause notice issued for demanding duty.

Show Cause Notice Requirement:
- Appellant argued show cause notice mandatory before demanding duty.
- Cited case laws emphasizing statutory requirement of show cause notice.
- Revenue contended no need for show cause notice post High Court and Supreme Court decisions.
- Mentioned Supreme Court and Tribunal decisions supporting no show cause notice requirement.
- Tribunal analyzed records, highlighted Assistant Commissioner's order denying exemption.
- Noted High Court's interim order allowing clearances on bank guarantee basis.
- Concluded no need for show cause notice based on legal proceedings and principles of Natural Justice.

Conclusion:
- Tribunal upheld lower authorities' decision rejecting refund claim.
- Emphasized compliance with Natural Justice principles.
- Stated Assistant Commissioner's order acted as show cause notice.
- Dismissed appeal, denying refund of duty paid by appellants.