The Hon’ble Calcutta High Court in the matter of M/s Haldia Petrochemicals Limited v. Assistant Commissioner [W.P. A No. 4249 of 2022, dated June 30, 2022] held that no recovery of Central Excise Duty, interest, and penalty can be made without service of adjudication order and directed the Revenue Department to refund the amount recovered from the assessee to the extent of more than 20% of the demand based on the adjudication order.
M/s Haldia Petrochemicals Limited, (“the Petitioner”) has filed an appeal against the recovery of demand relating to Central Excise Duty, interest, and penalty without service of Adjudication Order dated October 17, 2012 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) without serving any material documents about actual proof of any service of the adjudication order upon the Petitioner in compliance of the statutory formalities as required under Section 37C of the Central Excise Act, 1944 (“the Central Excise Act”).
The Petitioner contended that a Show Cause Notice (“SCN”) was issued by the Respondent proposing to disallow CENVAT credit taken by the Petitioner for the period of April, 2006 to January, 2011 for which the Petitioner replied and also appeared for a personal hearing before the Respondent concerned but thereafter Petitioner did not receive any further notice or order.
Further, after seven years while dealing with a different refund claim of the Petitioner which was sanctioned for refund, the same has been adjusted against the demand relating to the impugned order which was never served upon the Petitioner. The Respondent also proceeded to attach the Petitioner’s bank account.
The Hon’ble Calcutta High Court in [W.P. A No. 4249 of 2022, dated June 30, 2022] held as under:
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