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2006 (10) TMI 163 - HC - Central ExciseCENVAT - Demand for interest - paying excise duty while clearing the goods from time to time as per Rule 173G - few defaults - HELD THAT:- The fact however remains, that principles of natural justice require that the petitioner ought to be issued a Show Cause Notice as to why the interest amount should not be claimed from it and after affording a hearing that liability ought to be decided. That has not been done which is clearly contrary to the judgment of the Apex Court in Madhumilan Syntex [1988 (5) TMI 38 - SUPREME COURT]. That was particularly necessary in the fact of the present case where the petitioner has chosen to follow one of the options given by the Revenue and the demand for interest was being raised after a good number of years. As far as that aspect is concerned, in our view, tlie submissions of Mr. Patil deserve to be accepted. The petitioner was entitled to at-least show cause for which he had to be given an opportunity. Thus, we interfere with the demand Notices and quash and set aside the detention Memo. Consequently, the goods will be released The respondents may issue a show cause notice to the petitioner as to why the interest as claimed should not be recovered and then after affording a hearing and considering the defence, pass appropriate orders. Rule is made absolute in the aforesaid terms.
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