1996 (11) TMI 84 - SC - Central Excise

Summary

Issues involved: Show cause notice under Rule 9(2) of Central Excise Rules, 1944 lacking particulars of fraud or contravention.

In this judgment, the Supreme Court addressed the issue of a show cause notice issued to the assessee under Rule 9(2) of the Central Excise Rules, 1944, without specifying particulars of fraud or contravention. The notice was issued beyond the prescribed period of six months, indicating potential grounds for penalty imposition. However, the Court emphasized that natural justice requires the party to be informed of the allegations to enable a fair defense. The absence of specific details in the notice deprived the assessee of the opportunity to respond effectively, violating the principles of natural justice as established in previous rulings such as Collector of Central Excise v. H.M.M. Limited and Raj Bahadur Narayan Singh Sugar Mills Limited v. Union of India.

The Court allowed the appeal by the assessee, setting aside the Tribunal's order. Consequently, the bank guarantee provided by the appellant in compliance with previous orders was discharged, and any payments or deposits made in relation to those orders were to be refunded. No costs were awarded in this matter.