Separate show cause notice not required where duty demand follows an unchallenged earlier order directing payment of dues.

A duty demand was treated as consequential to an earlier unchallenged order withdrawing the fortnightly duty payment facility and directing payment of dues. Because that prior order had become binding on the assessee, the subsequent non-payment triggered recovery proceedings and the demand was considered validly confirmed in consequence of that order. In that setting, a separate show cause notice under Section 11A of the Central Excise Act, 1944 was held not to be necessary. The challenge to the duty confirmation therefore failed.

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Issues: Whether a separate show cause notice was required before confirming the duty demand when the demand flowed from an earlier order that had not been challenged.

Analysis: The duty demand was found to be consequential to the earlier order withdrawing the fortnightly duty payment facility and directing payment of dues. Since that order had not been challenged, it was binding on the assessee. The subsequent non-payment of duty led to recovery proceedings and the demand was treated as validly confirmed in consequence of the earlier order. In these circumstances, the requirement of a separate show cause notice under Section 11A was held not to arise.

Conclusion: No separate show cause notice was required under Section 11A of the Central Excise Act, 1944, and the duty demand was rightly confirmed; the assessee's challenge failed.

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