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2017 (2) TMI 621 - AT - Central ExciseImposition of penalty u/s 11AC of the CEA, 1944 - validity of SCN - variation in SCN - Held that - It is not incorrect to draw a conclusion to the effect that the contents of the notice were varied after the signature of the issuing authority. There is no endorsement or approval of such changes by issuing authority. As such, we find any proceedings pursuant to such notice, having such legal infirmity, cannot be sustained - appeal allowed.
Issues: Jurisdictional error in issuance of show cause notice leading to legal objection.
In this judgment by the Appellate Tribunal CESTAT NEW DELHI, the appellant challenged an order by the Commissioner of Central Excise, Delhi-II dated 31.02.2006, which confirmed central excise duty liability and imposed a penalty. The primary legal objection raised was regarding the show cause notice issued on 4.1.2002 but signed by the Commissioner on 14.01.2001. The notice referred to statements dated 7.6.2001 and 31.05.2001, leading to the appellant's argument that the notice was amended after being signed, rendering the proceedings void ab initio. The Tribunal noted that despite opportunities, the Revenue failed to explain the discrepancy in the dates mentioned in the show cause notice. The Bench directed the Revenue to provide evidence of when the notice was signed, but no satisfactory explanation was given. It was established that the notice could not have referenced statements dated 7.6.2001 and 31.05.2001 when it was signed on 14.01.2001. The Tribunal concluded that the contents of the notice were altered after the signature without approval, making any proceedings based on it legally flawed. Consequently, the impugned order was set aside, and the appeal was allowed on the grounds of the jurisdictional error in the issuance of the show cause notice. The judgment, delivered on 06.01.2017 by Mr. (Dr.) Satish Chandra, President, and Mr. B. Ravichandran, Member (Technical), highlights the importance of procedural correctness and adherence to legal requirements in administrative actions, emphasizing the need for show cause notices to accurately reflect the facts at the time of issuance to ensure the validity of subsequent proceedings.
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