2015 (9) TMI 572 - HC - Central Excise

Duty demand - suppression of facts - duty evasion - Held that - Pointing out certain lapses and contraventions of the provisions of the Act and Rules, related to the actual production of finished goods, the respondent alleged suppression and duty evasion. Since the respondent has taken the ground of suppression, etc., it is appropriate for this court to direct the petitioner to file necessary objections to the show cause notice impugned herein. Hence, the petitioner company is directed to file their objections within a period of two weeks from the date of receipt of a copy of this order and on such filing, the authority concerned shall consider the same and pass appropriate orders on merits and in accordance with law, within a period of six weeks thereafter, after affording an opportunity of personal hearing to the petitioner. - Petition disposed of.

Summary

Issues:
Challenge to Show Cause Notice and Statement of Demand under Central Excise Act, 1944.

Analysis:
The petitioner, a Public Limited Company engaged in manufacturing iron and steel products, challenged a Show Cause Notice and Statement of Demand issued by the respondent. The petitioner claimed to be the only integrated steel plant in Tamil Nadu and had undertaken significant modernization and expansion efforts. The respondent alleged that the petitioner's factory was producing goods below the required mark, leading to the issuance of the impugned notices. The petitioner contended that the notices were arbitrary, illegal, and without jurisdiction. The petitioner argued that there were no justifiable reasons for issuing the Show Cause Notice under Section 11(A)(4) of the Central Excise Act, 1944, and Rule 25 of the Central Excise Rules, 2002. The respondent, however, stated that the notices were based on available materials, requiring the petitioner to file objections. The court, considering the allegations of suppression and duty evasion, directed the petitioner to file objections within two weeks. The authority was instructed to consider the objections and pass appropriate orders within six weeks, providing an opportunity for a personal hearing to the petitioner.

In conclusion, the High Court of Madras disposed of the writ petition, directing the petitioner to file objections to the Show Cause Notice within two weeks and the authority to decide on the matter within six weeks thereafter. The judgment emphasized the importance of following due process and providing an opportunity for the petitioner to present their case before any final decision is made.