2013 (8) TMI 888 - HC - Central Excise

Summary

Issues involved: Challenge to withdrawal of exemption under Notification No. 167/71-C.E. dated 11th September, 1971 u/s Article 226 of the Constitution of India.

Summary:
In a petition challenging the withdrawal of exemption under Notification No. 167/71-C.E., the petitioner argued that they had satisfied all conditions for the exemption granted since 1992. The respondent contended that the petitioner did not meet the criteria for exemption related to excisable goods produced in a technical, educational, or research institute. Citing a Supreme Court decision, the respondent argued against the petitioner's eligibility for the exemption.

Upon reviewing the case, the Court noted that the petitioner was not given a show cause notice or an opportunity to be heard before the exemption was withdrawn. Despite various grounds raised in the petition, the Court decided to allow the writ petition solely on the basis of lack of procedural fairness in the withdrawal of the exemption. The Court set aside the order dated 1st May, 2013, and directed the Authorities to issue a show cause notice to the petitioner and make a decision regarding the applicability of the notification in accordance with the law.