1997 (10) TMI 269

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..... Normal Butanol (NBA), Iso-Butanol (IBA). During the period relevant i.e. May, 1982 to December, 1982, the aforesaid alcohols were classified under Tariff Item 68. One of the materials for the product DAA was a chemical known as Citric Acid. One of the raw materials necessary for the remaining products was a chemical known as Cobalt Octate. Both Citric Acid and Cobalt Octate were also classified under Tariff Item 68. A show cause notice dated 12-10-1984 were issued to the appellants alleging that the appellant had taken proforma credit on these two items for the period from May, 1982 to December, 1982, on the basis of wrong declaration dated 26-7-1982 and 25-2-1983 stating that Cobalt Octate was component part for the manufacture of alcohol .....

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..... to the fact that after this Notification No. 201/79, was amended, on the basis of details furnished, the Superintendent allowed them to continue to avail proforma credit under Rule 56A, in respect of these inputs. He vehemently contended that in terms of Section 11A of the Central Excise Act, the allegations of suppressions and wilful mistake are absent in show cause notice. He relied on the judgment of the Supreme Court in the case of Cosmic Dye Chemical reported in 1995 (75) E.L.T. 721 (S.C.) thereof. It has been held by the Supreme Court in that case that for purpose of application of proviso to Section 11A. Show cause notice must contain allegations of suppression or mis-statement of fact which is must wilful mis-statement means intent .....

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..... udgment of Supreme Court in the case of H.M.M. Ltd. (supra) referred to above. There is absolutely no statement of actions of commissions or omissions so as to attract the various ingredients of the proviso to Section 11A. The impugned order is a quasi-judicial act done by a quasi-judicial authority before any quasi-judicial act affecting any person with civil consequences can take place there must be a specific allegation in the show cause notice. In the absence of the same, no action of this type can be taken. Therefore, we set aside the impugned order and allowed the appeal, with consequential relief if any. In view of the above, we are not going to the merits of the other argument made by Shri D.B. Shroff. - - TaxTMI - TMITax - Cent .....

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