Case Law Details
JCBL Limited Vs Principal Commissioner (Punjab & Haryana High Court)
Held that impugned show cause notice cannot sustain as there has been an inordinate delay in adjudication of the same.
Facts-
The petitioner was engaged in fabricating the bodies on chassis received from manufacturers of chassis. After carrying out the activity of body building, petitioner was clearing the same as motor vehicles on payment of excise duty. Petitioner was also receiving chassis for fabrication of bodies from independent/private owners of the chassis. After manufacturing the bodies on such chassis, petitioner cleared such motor vehicles without payment of excise duty claiming exemption under Notification No. 06/2006-CE dated 01.03.2006. Revenue, however, was of the view that petitioner has wrongly availed of the exemption inasmuch as Cenvat Credit on the input consumed in the manufacture of bodies manufactured on duty paid chassis received from independent owners of the chassis had been taken and the vehicles so manufactured had been cleared for payment of applicable central excise duty. Accordingly two show cause notices dated 04.09.2008 for the period 01.08.2007 to 31.10.2007 amounting to Rs. 1,62,99,205/- and the second dated 12.11.2008 for the period 01.11.2007 to 31.03.2008 amounting to Rs. 2,43,05,657/- were served.
Instant writ petition has been filed assailing the afore-noticed two show cause notices.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
