Central Excise loses yet another case because of over-smart officers
A Show Cause Notice is issued by a Superintendent in 1994 demanding duty from L&T for the girders they made for Konkan Railways. Within two months, the Show Cause Notice is withdrawn as it was not issued by the proper officer and issued without authorisation. For two years, the department kept quite and in 1996 issued another notice alleging suppression. The Supreme Court decided the case now, not on merits, but on limitation. There is no doubt the assessee was required to pay the duty, but the second notice was declared time barred as department’s slumber for two long years carried no premium.
This is how the Department loses cases – even when they have a strong case on merits. It requires extraordinary talent to lose a case when the law is so strongly on your side and the Department is full of such talented people who will keep no stone unturned to ensure that the Department ultimately loses.
See our Breaking News for the details of the case