Central excise recovery on admitted dues held unsustainable where the show-cause notice was unnecessary and the demand was not maintainable.

Recovery of outstanding central excise duty on admitted clearances was found unsustainable where the demand was based on existing duty records and the show-cause notice was unnecessary in the circumstances. The discussion notes that detention of goods for non-payment did not by itself validate the recovery mechanism, and that the quantified dues did not cure the defect in issuing the notice. It further records that the demand for duty, interest and penalty was treated as not maintainable, with the appellate relief to the assessee sustained.

---

---

Issues: Whether the show-cause notice and demand for recovery of outstanding central excise duty were sustainable, including the objection that the notice was time-barred and unnecessary for recovery of admitted dues.

Analysis: The dispute concerned recovery of balance central excise duty admittedly payable on clearances made during the relevant period, together with interest and penalty, after the goods had been detained for non-payment. The reasoning accepted that the demand arose from outstanding dues reflected in the assessee's duty payment records and that the demand mechanism invoked for recovery was not vitiated merely because the duty had already been quantified. The finding further proceeded on the view that the show-cause notice was not warranted in the circumstances and that the Commissioner (Appeals) correctly treated the demand as unsustainable.

Conclusion: The demand and the challenge to the show-cause notice were held unsustainable, and the relief granted to the assessee was upheld.

---