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2015 (10) TMI 567 - HC - Central ExciseChallenge to the show cause notice - SCN propose to deny the CENVAT Credit prior to the date of registration while demand duty for such period - Duty demand u/s 11A(5) read with Rule 14 - Held that:- No doubt that this Court would not have ordinarily entertained the petition which challenges the showcause notice. In ordinary course,the parties could have been directed to file reply to show cause notice and adjudicating authority could have been permitted to take decision in accordance with law. However, it is noticed that the show cause notice expressed in contravention of the statutory provision, this Court could not have been powerless under the article 226 of the Constitution of India to entertain a petition challenging the show cause notice, which is exfacie illegal. Show cause notice is issued on the premise that the Petitioners were not entitled for obtaining cenvat credit amounting to ₹ 20,78,77,048/. In effect the showcause notice proceeds on the premise that the cenvat credit sought to be credited by the petitioner prior to the date of registration was inadmissible in law. The showcause notice therefore demands as to why the said amount should not be recovered from the Petitioner and as to why interest and penalty should not be levied. Perusal of Section 32 M would reveal that the very order of settlement passed under Section 5 of Section 32F shall be conclusive as to the matters stated therein and no matters covered by such order shall be reopened in proceedings. The only exception is that it can be done save as provided in this chapter. Nothing has been pointed out by the learned Counsel for the Revenue, which would permit the issue which is already concluded by the order passed by the learned Settlement Commission to be reopened again. - Interim relied granted.
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