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2015 (6) TMI 370 - HC - Central ExciseChallenge to the show cause notice - Pre determination of issue - Availment of CENVAT Credit - petitioner had availed input credit based on the invoices showing purchase of materials, like Re-rollable scrap, defective HR Steel plates, Sec HR Steel plates, etc. However, those materials were not actually required for the manufacturing activities of the Unit - whether the respondent has already pre-determined the issue and whether the enquiry is an empty formality - Held that:- The respondent in a very fair manner disclosed all the materials collected during the course of investigation. Nothing was withheld. In case an argument of this nature is entertained that by giving details of the violations and the evidence collected in the show cause notice as well as in the counter-affidavit, no purpose would be served by submitting to the jurisdiction of the statutory authority none of the authorities, exercising jurisdiction under various Statutes and more particularly, under the Central Excise Act, would be in a position to discharge the statutory function. Merely because the show cause notice does not contain a specific word that these are all prima facie findings, the petitioner cannot be heard to say that the respondent has decided the issue once for all and the notice is issued only as a ritual. It is not as if the order passed by the respondent is final. The Central Sales Tax Act contains hierarchy of authorities, in case final order is passed by the respondent by rejecting the explanation. The petitioner is also having a remedy of appeal before the High Court. The respondent has not determined the liability so far. The materials collected by the respondent to fix the liability are disclosed in the show cause notice. Those materials were disclosed only with a view to enable the petitioner to submit its reply - Neither the materials disclosed in the show cause notice nor the statement made in the counter-affidavit would go to show that the respondent has already applied its mind and has formed a definite opinion with regard to the violation committed by the petitioner. - petitioner has not made out a case for quashing the statutory proceedings - Decided against assessee.
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