LURGI METALLURGIE GMBH Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS petition has been filed by the petitioner challenging the issuance of show cause notice dt. 11 -5 -2006 (Annex.3). The show cause notice was issued by the Commissioner of Central Excise, Jaipur -II. By the aforesaid show cause notice, the petitioner is called upon to show cause and explain as to why the service tax amounting to Rs. 91,67,098/ - and education cess amounting to Rs. 28,235/ - should not be demanded and recovered from the petitioner under the erstwhile Section 73(1)(a) and proviso to Section 73(1) of the Finance Act, 1994. The petitioner has also been asked to show cause and explain as to why interest as applicable should not be recovered from him under Section 75 of the Finance Act, 1994. Show cause notice is also issued in connection with penalty. It is the aforesaid show cause notice which is impugned at the instance of the petitioner.

(2.) THE learned advocate Mr. Ramit Mehta submitted that issuance of show cause notice is without any basis and foundation and under the facts and circumstances, no show cause notice could have been issued. He submitted that issuance of show cause notice is against the settled principles of law. It is submitted that as per the Rules, it cannot be said that the petitioner has violated any provision of law prevalent at the relevant time.

(3.) THE learned Counsel for the Union of India vehemently argued that the petitioner can raise all these points in pending matter before the Commissioner as ultimately, the Commissioner after application of mind is required to take decision in accordance with law.