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Issues:
1. Validity of the order passed by the Collector of Customs and Central Excise, Bhubaneswar. 2. Interpretation of the judgment of the Orissa High Court and its impact on subsequent Show Cause Notices. 3. Justifiability of issuing fresh Show Cause Notices without proper permission from the Orissa High Court. Issue 1: Validity of the Order by the Collector: The appeal before the Appellate Tribunal CEGAT, New Delhi involved M/s. Indian Metals and Ferro Alloys Ltd. challenging the order-in-original passed by the Collector of Customs and Central Excise, Bhubaneswar. The appellant, represented by Shri K. Narasimhan, argued that they operated as a 100% export-oriented unit and had availed exemptions on duties for imported goods and indigenous excisable goods. The dispute arose from the removal and sale of charge chrome in the domestic market, leading to Show Cause Notices. The Orissa High Court had initially quashed the Notices, but subsequent re-issuance led to the current appeal. The Tribunal had earlier ruled against the Revenue's actions, citing the High Court's direction not to take further action on withdrawn Notices. The Supreme Court upheld this view, leading to the setting aside of the duty demand and penalty imposed by the Collector. Issue 2: Interpretation of Orissa High Court's Judgment: The Orissa High Court's order directed the withdrawal of Show Cause Notices against the appellant, rendering the writ petition infructuous. However, the Revenue re-issued some Notices, leading to legal challenges. The Tribunal, in a previous case, emphasized the importance of upholding superior court orders and preventing disobedience by lower authorities. The Tribunal held that the Revenue's actions were in violation of the High Court's order, leading to the setting aside of the duty demand and penalty. The Supreme Court affirmed this decision, emphasizing the need for proper permissions before re-issuing Notices. Issue 3: Justification of Issuing Fresh Show Cause Notices: The Respondent, represented by Shri M.S. Arora, argued that previous Tribunal decisions should not bind assessments for subsequent periods. However, the Tribunal and Supreme Court focused on the importance of upholding court orders and preventing arbitrary re-issuance of Notices without proper permissions. The Supreme Court's ruling in a similar case involving the same parties was deemed binding on the Tribunal, leading to the allowance of the appeal and the setting aside of the duty demand and penalty imposed by the Collector. The Revenue was directed to comply with the Tribunal's order. In conclusion, the judgment by the Appellate Tribunal CEGAT, New Delhi set a precedent regarding the necessity of following court orders and obtaining proper permissions before re-issuing Show Cause Notices, ultimately impacting the validity of duty demands and penalties imposed by revenue authorities.
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