INDIAN OXYGEN LTD Vs. SUPERINTENDENT OF CENTRAL EXCISE

JUDGEMENT

(1.) This writ petition is directed against an assessment-memorandum (endorsement) made by the Superintendent, Central Excise on 27-8-1987 on the monthly extract of PLA/RG 23 filed by the petitioner for the period May 1986 to July 1987. One of the assessment memorandums, which is subject matter of the dispute in this matter runs:

(2.) A reading of the impugned endorsement shows that it has been made under Rule 57-I of Central Excise Rules. Sub-Rule (1) of Rule 57-I specifically provides that before disallowing any ocredit of duty paid and an input taken by a manufacturer, the proper officer shall give a show cause notice. It does not appear in this case that any such show cause notice was given before disallowing the said credit taken by the manufacturer petitioner. A specific assertion has been made in the writ petition that no show cause notice was given by the Superintendent before making the impugned endorsement (See paras 9 and 11 of the writ petition). In the absence of the counter affidavit, we accept the said statement. On that basis we direct that the impugned endorsement dated 27-8-1987 shall be treated as a show cause notice within the meaning of sub-rule (1) of Rule 57-I of the said Act. The petitioner shall furnish the explanation within one month from today. A certified copy of this order shall be filed alongwith explanation/objection to be filed by the petitioner before the proper officer. The proper officer shall thereupon consider the said objection/explanation and pass appropriate orders in accordance with the law.

(3.) With these directions the writ petition is disposed of.