Show cause notice to be kept pending if appeal for earlier period on similar issue pending before appellate authority - Central Excise - 1/90-AU

Show cause notice to be kept pending if appeal for earlier period on similar issue pending before appellate authority Circular No. 1/90-AU Dated 19-3-1990 Government of India Central Board of Excise Customs New Delhi Subject : Show cause notice to be kept pending if appeal for earlier period on similar issue pending before appellate authority Please find enclosed herewith a copy of Tribunal Misc. Order No. 131/89-A dated 1-12-1989 in M/s. Orient Paper Mills v. Collector of Central Excise, Indore. The Tribunal has held that in view of their judgment in TELCO case (Order No. 432-433/87-A dated 4-6-1987) and their stay order in this very case, the Department will not be correct in collecting cess on higher value. However, considering that the Department has filed an appeal before the Supreme Court, they have directed that show cause notices may be issued to the appellants but no final orders should be passed against them and demands enforced till such time as the Supreme Court decides the Department's appeal in TELCO's case. 2. On this issue, Board has already issued following circulars :- (i) Circular No. 7/84 dated 23-2-1984 issued from F. No. 390/3/84-AU wherein, it was directed that the show cause-cum-demand notices subsequent to the period covered by orders of Collector (Appeals) as well as Tribunal which had been agitated in appropriate forum should be raised in order to protect the Government revenue. (ii) Circular No. 82/84 dated 28-6-1984 issued from F. No. 383/11/84-AU, the above directions were reiterated. (iii) Circular No. 2/85-AU dated 8-1-1985 issued from F. No. 384/265/85-AU (BMB) wherein it was clarified that orders of the Tribunal are "judgements in personem" and not "judgments in rem". 3. In view of the Tribunal order referred to above, the Board desires that in similar cases, show cause-cum-demand notices may be raised but not enforced till final decision by the Supreme Court wherever the issue has been agitated before Collector (Appeals), Tribunal and lastly, the Hon'ble Supreme Court.