Brief of the Case:
The Hon’ble Supreme court in the case of M/s Dharampal Satyapal Ltd. held that the passing of recovery order without issuance of show cause notice is against the principles of law and thus, the proceedings initiated has no validity. Thus, the order recovery order passed without providing an opportunity to assessee of being heard, even in a case where the subject matter is decided by Apex court in some other case, is also invalid.
Brief Facts of the case:
- Assessee was engaged in manufacturing tobacco products in North-East India availing the benefits of Notification No. 32/2008 exempting the payment of various excise duties as payable on goods manufactures in tax free zone of North –East.
- Subsequently, on Dec 31,1999 another Notification was issued whereby exemption of central excise was withdrawn in respect of goods falling under Chapter 21.06 (pan masala) and Chapter 24 (tobacco and tobacco substitutes, including cigarettes, chewing tobacco etc.).
- This partial withdrawal was challenged before Guhati High Court where the amendment was cracked down.
- Again the notification was withdrawn vide Sec 154 of Finance Act, 2003 to be retrospectively effective. Hon’ble Apex court in the case of R.C. Tobacco Private Ltd. upheld the constitutional validity of Sec 154.
- The jurisdictional Assistant order passed an order for recovery of duty refunded under the withdrawn notification without issuing a show cause notice u/s 11A.
- The action of adjudicating authority has been disputed by the assessee in the present appeal which finally reached to Hon’ble Apex Court.
Contention of the Assessee:
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