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Commissioner of Customs and Central Excise J & K, Jammu Versus M/s Chenab Textile Mills

2017 (9) TMI 1186 - JAMMU & KASHMIR HIGH COURT

Validity of SCN - Whether the Tribunal has erred in holding that non-invocation of a proviso appended to Notification in the show cause notice issued by the department, which was otherwise covered by Rule 9 and 49 of the Central Excise Rules, 1944 invoked in the show cause notice, can be a ground for dismissal of the said show cause notice? - Held that: - Admittedly, under the trade notice No. 112/94-CE dated 15.12.1994, the duty liability could have been discharged by the assessee at single yar .....

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ted 18.05.1995. - It is evident that the aforesaid show cause notice gives the sufficient particulars with regard to the basis on which the demand of duty, penalty and interest was being made by the Revenue. It is pertinent to mention here that the assessee did not raise the issue with regard to vagueness of the show cause notices either before the Adjudicating Authority or before the Appellate Authority. The aforesaid contention has been raised for the first time in the objections which hav .....

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dated 05.04.2011 on the following substantial question of law: Whether the Tribunal has erred in holding that non-invocation of a proviso appended to Notification in the show cause notice issued by the department, which was otherwise covered by Rule 9 and 49 of the Central Excise Rules, 1944 invoked in the show cause notice, can be a ground for dismissal of the said show cause notice. 2 Facts giving rise to filing of the instant appeal briefly stated are that the respondent i.e M/s Chenab Texti .....

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ty of cotton yarn/non-cellulosic/cellulosic/acrylic/acrylone yarn and paid the central excise duty on the value determined on the basis of cost of single yarn at the spindle stage and did not pay the differential amount of duty on the assessable value as determined at the time of removal of goods from the factory premises after carrying out various processes. Accordingly, nine show cause notices covering the period from November 1994 to July 1996 were issued to the respondent and the total duty .....

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11-A of the Central Excise and Salt Act, 1944. Being aggrieved with the decision of the Adjudicating Authority, the Revenue filed an appeal before the Customs, Excise and Service Tax Appellate Tribunal ( hereinafter to be referred to as the Tribunal). The Tribunal vide order dated 12.06.2007 dismissed the appeal of the Revenue and held that out of the nine show cause notices issued to the respondent, 1st four show cause notices were fully covered by the ratio of the decision of the High Court da .....

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id factual background, the Revenue has filed this appeal. 4 Learned Sr. Standing Counsel for the Revenue at the very outset fairly submitted that the 1st four show cause notices pertain to the period from November 1994 to April 1995 and 5th show cause notice insofar as it pertains to the period from 1st May, 1995 up to 18.05.1995 is invalid in terms of decision of High Court dated 13.11.2001 referred to supra . However, the remaining show cause notices are valid and could not have been quashed o .....

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by the assessee on account of non-mentioning of the notification dated 18.05.1995. It is further submitted that the issue with regard vagueness of the show cause notices was neither raised by the assessee either before the Adjudicating Authority or before the Appellate Authority and the same has been raised for the first time in the objections which have been filed in the instant appeal. In support of his submissions, learned counsel for the Revenue has referred to a decision of Division Bench .....

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f withdrawal of the exemption which was granted to the assessee, therefore, the same has resulted in prejudice to the assessee. It is submitted that had the assessee been furnished the particulars with regard to the notification dated 18.05.1995, the assessee would have effectively contested the proceedings. In support of his submissions, learned counsel for the assessee has referred to decisions of Supreme Court in the cases of 1. Commissioner of Central Excise, Nagpur vs. Ballarpur Industries .....

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4-CE dated 15.12.1994, the duty liability could have been discharged by the assessee at single yarn off spindle stage. However, subsequently by issuance of notification dated 18.05.1995, the aforesaid exemption which was granted to the assessee was withdrawn. In other words, from 18.05.1995 onwards, the assessee was required to discharge the duty liability only after doubling multi-folding of the yarn at the time of clearance. It is pertinent to mention here that the Tribunal in paragraph No.3 o .....

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ground that in the show cause notices, no specific mention has been made to the proviso added to the notification dated 18.05.1995. 6 At this stage, we deem it appropriate to refer to the relevant extract of one of the demand cum show cause notice dated 11.10.1996 which reads as under: From Nov 94 onwards, the Noticee has started entering the production of yarn (manufactured by them) in the RG-I Register at the Single Yarn stage i.e at the spindle stage and after paying the Central Excise duty a .....

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