1989 (5) TMI 204 - HC - Central Excise

Summary

Issues Involved:
The interpretation of Section 11A (3)(ii)(b) of the Central Excises and Salt Act regarding the validity of a show-cause notice issued by the Collector.

Judgment Details:

1. The appeal by the Union of India was against an interim order passed in the respondents' writ petition, where doubts were raised regarding the Collector's authority to issue the impugned show-cause notice under Section 11A (3)(ii)(b) of the Act, leading to a stay on further proceedings.

2. Reference was made to a Division Bench judgment of the Delhi High Court which interpreted the provision as a rule of limitation, assuming the existence of a cause of action without defining or creating it, supporting the appellants' position.

3. The Court observed that Section 11A(1) empowers the officer to issue a show-cause notice within a specified time "from the relevant date," which in cases of provisional assessment is the date of duty adjustment after final assessment. The contention that the relevant date had not occurred, thus questioning the validity of the notice, was deemed substantial by the Court.

4. The material forming the basis of the show-cause notice was argued to be different from that of the provisional assessments, but the Court found insufficient evidence at that stage to support this claim, deferring a decision to the final hearing.

5. It was contended that not all assessments were provisional and some had been finalized, yet lacking supporting affidavit from the respondents, the Court deferred judgment on this matter due to insufficient evidence.

6. Despite the appellants' request to proceed with the show-cause notice hearing with safeguards, the Court, due to doubts on its validity, deemed such action inappropriate.

7. The Court, based on the merits of the case, dismissed the appeal without delving into the argument raised by the respondents regarding the appeal's timeliness.

The appeal was dismissed with no order as to costs.