Modvat credit recovery notices issued by an unauthorised officer were invalid under the governing Board circular.

Show-cause notices for disallowance and recovery of wrongly availed Modvat credit were invalid where they were issued by the Range Superintendent instead of the officer vested with adjudicating authority under the applicable Board circular. The circular in force required recovery proceedings under Rule 57-I to be initiated and adjudicated by the competent adjudicating authority, and no contrary jurisdictional basis was shown. On that footing, notices issued by an unauthorised officer were without authority and liable to be set aside.

---

---

Issues: Whether show-cause notices issued by the Range Superintendent for disallowance of Modvat credit under Rule 57-I of the Central Excise Rules, 1944 were valid when the Board's circular vested such action in the adjudicating authority.

Analysis: The notices were issued during the period when the Board's Circular No. 267/86/86-CX. 8 dated 20-12-88 was in force. That circular required recovery proceedings for wrongly availed Modvat credit to be initiated and adjudicated by the officer having adjudicating authority. The notices in question were issued by the Range Superintendent, who was not the competent authority under the circular, and no contrary jurisdictional position was shown.

Conclusion: The show-cause notices were without authority and were liable to be set aside.

---