Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2022 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 702 - HC - Central ExciseTime Limitation - Wrongful availment of CENVAT Credit - motor vehicles cleared without payment of excise duty claiming exemption under N/N. 06/2006-CE dated 01.03.2006 - Case of Department is that petitioner has wrongly availed of the exemption inasmuch as Cenvat Credit on the input consumed in the manufacture of bodies manufactured on duty paid chassis received from independent owners of the chassis had been taken and the vehicles so manufactured had been cleared for payment of applicable central excise duty - inordinate delay in adjudication of the show cause notices as per Section 11(A) of the Central Excise Act, 1944. HELD THAT:- The issue as regards inordinate delay in adjudication of the show cause notices as per Section 11(A) of the Central Excise Act, 1944 came to be dealt with exhaustively by a Division Bench of this Court in M/s Shree Baba Exports through proprietor Ms. Jyotsna Agarwal vs. Commissioner, GST & Central Excise, Commissionerate, Chandigarh and another (CWP No. 11860 of 2021) decided on 15.03.2022 [2022 (3) TMI 749 - PUNJAB & HARYANA HIGH COURT], where it was held that it is clear that in Section 11-A(11), the legislature has prescribed a time limit. The Authority(s) are duty bound to abide the same. The expression “where it is possible to do so” does not mean that the time prescribed can be extended perpetually. The time limit cannot be taken to be directory except in a case where the Authority has a reason to offer as an explanation for extending the said time limit. In the present case, no explanation has been offered in the written statement which can be held to be a plausible explanation for not adjudicating upon the Show Cause Notice within the time prescribed. In the facts of the present case the impugned show cause notices were issued in the year 2008. The same have not been adjudicated upon and the only explanation coming forth in the written statement is that the matter had been transferred to the Call Book as per CVIC guidelines issued from time to time. There are no cogent basis or legal impediment has been offered which may be construed to be a plausible explanation for not adjudicating upon the show cause notices within the time prescribed. In view of the above and by following the dictum laid down in COMMISSIONER GST AND CENTRAL EXCISE & ANR. VERSUS M/S SHREE BABA EXPORTS [2022 (8) TMI 634 - SC ORDER] the impugned show cause notices cannot sustain as there has been an inordinate delay in adjudication of the same. Petition allowed.
|