ADG, CEI has jurisdiction to issue Show Cause Notices - Board is happy with High Court Judgement
CBEC has called the attention of the field officers to the Allahabad High Court's Order and Judgment dated 21.05.2012. Writ Tax No. 251 of 2012 - M/s Raghunath International Ltd vs UOI & Anr - 2012-TIOL-533-HC-ALL-CX.
In this case, involving demand against a Gutkha manufacturer, Show Cause Notice was issued by Addl. Director General, Directorate General of Central Excise Intelligence. The assesssee filed a Writ Petition before High Court for quashing the Show Cause Notice, interalia on the following grounds:
i) The Show Cause Notice was issued by Dr.Devender Singh, ADG, CEI whose appointment as ADG, CEI has not been notified by the Central Board of Excise & Customs in the official gazette which was required to be done in terms of Rule 3(1) of the Central Excise Rules,2002;
ii) The said Show Cause Notice has been issued without taking written approval of the Commissioner, which was must in terms of the Board's circular dt. 01.10.2003 and which circular was binding on the ADG.
The High Court held that Addl. Director General, having been authorized to act as a Commissioner Central Excise, was a Central Excise Officer, within the meaning of Section 2(b) of the Central Excise Act, 1944 and was fully authorized to issue Show Cause Notice. The High Court also held that submission that prior permission of the adjudicating authority is required before issuing the show cause notice is without any substance.
Board wants the order to be brought to the notice of concerned officers for taking proper note of it and bringing it to the notice of the Court appropriately in cases involving identical issue.
CBEC Legal Section F.No.280/49/2012-CX.8A Dated: June 27, 2012