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TMI Blog1989 (12) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... w. 3. The respondents herein paid duty only on the job work charges and when the RT-12 returns were filed for the relevant period, the Supdt. made endorsements on the RT-12 returns pointing out short levy on this ground and directed the respondents to make the payment.The respondents went in appeal against the RT-12 assessment before the Collector (Appeals), who, in the aforesaid order, held that the lower authority has not followed the procedure under Section 11A of the Central Excises and Salt Act, 1944 and hence held that the demands raised by the Supdt. on RT-12 returns are not sustainable in law. He, therefore, set aside the demands and allowed the appeals of the respondents herein. The department has come up in appeals against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court, demand made on RT-12 returns in terms of Rule 1731 is perfectly valid and no notice under Section 11A of the Act is called for. He also referred to the decision of the South Regional Bench in the case of Collector of Central Excise, Bangalore v. Karnataka Scooters Ltd. reported in 1983 ECR 745D (Cegat Madras), wherein the South Regional Bench held that the amount indicated by the Supdt. on the RT-12 return is payable and should have been debited to the personal Ledger Account within ten days of the receipt of the RT-12 by the assessee. He also contended that since the assessment or RT-12 is a quasi-judicial function and is an adjudication order, there is no need for another parallel proceedings by issue of show cause notice; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s case has distinguished the verdict of the Supreme Court decision of Kosan Metal Product Ltd. The Bombay High Court has held that the assessment made under Rule 1731 is valid and demands arising out of such assessments are enforceable and no proceedings under Section 11A of the Act are called for. This judgment of the Bombay High Court does not appear to lay down case law, since they themselves observe in para 13 as below. "The above views are our prima facie views in the matter and expressed only for the disposal of the present appeals which are against the interlocutory order." Hence when the decision of the Supreme Court directly on the ponit is available, that is binding on us and has to be respected. In the case decidedly the south ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and was made and the demand confirmed after hearing and hence it must be regarded as valid. The Counsel submitted that post facto show cause notice should be regarded as adequate in law. This contention was negatived by the Court which held that a notice and an opportunity of making representation against the notice and of being heard were essential before a demand could be created against an assessee. This was emphasised by the Supreme Court in its judgment in the case of Gokak Patel Volkart Ltd. v. Collector of Central Excise, Belgaum -1987 (28) E.L.T. 53 (SC) = 1987 (11) ECR 363 (SC). The Supreme Court judgment in Collector of Central Excise, Baroda v. Kosan Metal Products Ltd. -1988 (38) E.L.T. 573 (SC) squarely applied to the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11A of the Central Excises and Salt Act, it would be barred by limitation and the fact that endorsements and demands were made on RT-12 Returns would not save limitation." 8. From the above, we are convinced that it has become a settled law that short endorsement made on RT-12 Return cannot save limitation under Section 11A, unless they are followed up by proper show cause notice issued under Section 11A. 9. Shri K.M. Mondal contended that the endorsement on RT-12 returns are giving reasons and they could be construed as show cause notices. Non mentioning of Section 11A cannot vitiate the notice. We have carefully gone through the endorsements. We find that though reasons for raising the demand are given, it cannot be construed as a not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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