Summary
An assessee appealed against an internal departmental opinion that preceded adjudication of an excise show-cause notice. The Supreme Court held the appeal premature. Communication of the opinion under a High Court direction did not turn it into an adjudication. The assessee could raise all objections, including absence of manufacture, in its response to the notice.
Issues
- Whether an internal preliminary opinion communicated under a judicial direction was independently appealable before excise adjudication.
- Whether the monetary-limit circular required withdrawal of this appeal.
Provisions considered
- Section 11A, Central Excise Act, 1944Determination follows notice, an opportunity of hearing and consideration of the response; the provision does not require a separate preliminary adjudication of manufacture before notice. (¶¶ 4, 5, 6, 7, 8, 9, 10, 11)
Held
- All objections, including whether the process amounts to manufacture, may be considered in the show-cause adjudication; a separate preliminary determination and hearing before issuing notice are not required. (¶¶ 5, 6, 7)
- The internal opinion was not a determination under section 11A(10). Its court-directed communication did not create an independent right of appeal, and the appellate proceedings were premature. (¶¶ 9, 10, 11)
- Writ petitions against mere show-cause notices should ordinarily not be entertained where the statutory process provides redress. (¶ 12)
- The monetary-limit circular did not strictly cover this dispute about the existence of adjudication and maintainability of the assessee’s appeal, where no duty had been assessed or computed. (¶¶ 14, 15)
Result
Revenue’s appeal allowed without costs. The Commissioner (Appeals) and Tribunal orders were set aside. Proceedings on the show-cause notice were to continue according to law; the assessee could submit its response and supporting material within three weeks. Whether its process amounted to manufacture and its eventual duty liability were not finally decided.