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2023 (12) TMI 301 - AT - Central ExciseSeeking refund of differential duty demanded without issuing show cause notice and without affording an opportunity of hearing to the appellant - violation of principles of natural justice - HELD THAT:- The Hon’ble Supreme Court has consistently held in various decisions that show cause notice is a condition to demand any tax in this regard. Reference made to the decision of the Hon’ble Apex Court in the case of GOKAK PATEL VOLKART LIMITED VERSUS COLLECTOR OF CENTRAL EXCISE [1987 (2) TMI 64 - SUPREME COURT] wherein in para 9 and 10 the Hon’ble Apex Court has observed An opportunity to be heard is intended to be afforded to the person who is likely to be prejudiced when the order is made before making the order thereof. Notice Is thus a condition precedent to a demand under sub-section (2). In the instant case, compliance with this statutory requirement has not been made, and, therefore, the demand is in contravention of the statutory provision. The ratio of the decision cited is squarely applicable in the present case because in the present case also, no show cause notice as required in law was issued to the appellant and no opportunity of hearing as required under law was accorded. Hence, by following the ratio of the Hon’ble Apex Court decision, the rejection of refund claim of Rs. 19,55,010/- deposited by the appellant under protest is liable to be refunded to the appellant as prescribed by the law - appeal allowed.
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