Wellman (Hindustan) Pvt. Ltd. vs Union Of India (Uoi)
2002 Latest Caselaw 202 Del

ORDER

A.K. Sikri, J.

1. The petitioners in this writ petition have, inter alia, questioned the show cause notice dated 25th January, 1977 whereby and where under the extended period limitation as contained in the proviso appended to Section 9(2) off the Central Excise Rules, 1994 has been issued. We have been taken through the show cause notice from a perusal whereof it is not stated that the condition prevailing necessary for invoking the said provision has been complied with. The matter is covered by a decision of the Apex Court in the case of Kaur and Singh v. Collector of Central Excise, New Delhi reported in 1997 (94) ELT 289 wherein it has been held that the party to whom a show cause notice of this kind is issued must be made aware of the allegation against it. This is a requirement of natural justice. Unless the assessed is put to such notice, he has no opportunity to meet the case against him. This is all the more so when a larger period of limitation can be invoked on a variety of grounds. Which ground is alleged against the assessed must be made known to him, and there is no scope for assuming that the ground is implicit in the issuance of the show cause notice. (See Collector of Central Excise v. H.M.M. Limited) and Raja Bahadur Narayan Singh Sugar Mills Limited v. Union of India .

2. Keeping in view of the aforementioned pronouncement of the Apex Court, we are of the opinion that the impugned show cause notice cannot be sustained. This writ petition is allowed. The show cause notice dated 25th January, 1977 whereby the penalty sought to be initiated against the petitioners, is quashed.