2019 (5) TMI 1630 - HC - Central Excise

Consultation with noticee before issue of show cause notice - Circular No.1053/2/2017-CX dated 10.3.2017 of CBEC - It was pointed out that the petitioner immediately replied to the said pre-show cause notice asking for a reasonable time as the person who was aware of the entire facts was not reachable. It was pointed out that thereafter on the very same day, that is, on 12.4.2019 the impugned show cause notice has been issued, which is not in the spirit of the circular dated 10.3.2017. HELD THAT - Issue Notice returnable on 27th June, 2019. By way of ad-interim relief, further proceedings pursuant to the impugned show cause notice dated 12.4.2019 are hereby stayed.

Summary

Issues involved:
Violation of Circular No.1053/2/2017-CX regarding consultation before issuing show cause notice.

Analysis:
The petitioner's advocate highlighted the issuance of a pre-show cause notice followed by an immediate impugned show cause notice, contrary to Circular No.1053/2/2017-CX. The petitioner requested reasonable time for preparation due to unavailability of a key individual. The court acknowledged the advocate's submissions and issued a notice returnable on 27th June, 2019. As an ad-interim relief, proceedings related to the impugned notice dated 12.4.2019 were stayed. Direct service was permitted concerning respondent No.2. The court's decision reflects a concern for adherence to procedural fairness and the principles outlined in the circular, emphasizing the importance of consultation before issuing show cause notices to ensure a fair opportunity for the noticee to respond adequately.