Show cause notice and speaking order requirements governed the remand for exemption consideration under the excise notification.

A demand for duty could not be sustained where the Assistant Collector had not issued a show cause notice and had not passed a speaking order before directing payment. The appellate forum therefore set aside the impugned direction and the order-in-appeal, and remanded the matter to the original authority for fresh consideration. The authority was directed to examine the request for exemption under Notification No. 33/90-C.E. (N.T.), dated 5-9-1990, and, if required, proceed only after issuing a show cause notice and passing a speaking order.

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Issues: Whether the demand/direction could be sustained when no show cause notice was issued and no speaking order was passed, and whether the matter should be remanded for consideration of exemption under Notification No. 33/90-C.E. (N.T.), dated 5-9-1990.

Analysis: The record showed that the Assistant Collector had not issued a show cause notice and had not passed a speaking order before requiring payment of duty. In these circumstances, the appellate forum found it appropriate to set aside the impugned direction and the order-in-appeal and return the matter to the original authority. The original authority was directed to consider the request for exemption under the notification and, if necessary, proceed after issuing a show cause notice and passing a speaking order.

Conclusion: The impugned orders were set aside and the matter was remanded for fresh consideration of exemption after due process.

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