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of <h1>Successful appeal due to procedural flaws in show cause notice and service, emphasizing importance of compliance in customs matters.</h1> The appeal succeeded as the Tribunal found that the failure to issue a proper show cause notice before confirming demands and the service of notice on the ... Demand without show cause notice, not sustainable - issue of show cause notice is a mandatory requirement for raising demands Issues:1. Failure to issue a proper show cause notice before confirming demands.2. Service of notice on CHA instead of the appellant.3. Applicability of relevant case laws on the issue.Issue 1: Failure to issue a proper show cause notice before confirming demandsThe appeal stemmed from the confirmation of demands in terms of Order-in-Original No. 120/2004, where the appellant's claim for a concessional rate of duty under Customs Notification No. 26/2000 was denied without a proper show cause notice. The Deputy Commissioner's letter dated 17-1-2004 was deemed insufficient as it did not meet the criteria of a show cause notice as mandated by law. The appellant argued that the absence of a show cause notice was a violation of Section 28 of the Customs Act, which includes short-levy cases. Despite the appellants' contentions, both the Deputy Commissioner and the Commissioner (A) rejected their plea. The Tribunal, however, relied on the judgment in Metal Forgings v. UOI, emphasizing the necessity of a specific show cause notice indicating the amounts demanded and calling upon the appellant to show cause. As the letter was served on the CHA instead of the appellants directly, the proceedings were deemed flawed, leading to the appeal's success and allowance with any consequential relief.Issue 2: Service of notice on CHA instead of the appellantThe appellant argued that the letter from the Deputy Commissioner was served on the CHA and not directly on them, rendering the service invalid in the eyes of the law. Citing various case laws, including Sidwal Refrigeration Industries Pvt. Ltd. v. CCE and Krisons Electronic Systems Ltd. v. CC, it was established that service of notice on the CHA within the time limit prescribed under the Customs Act is not sufficient, as the CHA's role ceases once the goods are cleared. Therefore, serving notice on the CHA cannot be equated to serving notice on the importer. The Tribunal concurred with this argument, further strengthening the appellants' case and leading to the appeal's success.Issue 3: Applicability of relevant case laws on the issueThe Tribunal extensively discussed the relevance of various case laws, such as CC v. Trivandrum Rubber Works Ltd. and Kabadi Chicknagusa & Sons v. CC, to support the appellants' contention regarding the necessity of a proper show cause notice and the invalidity of serving notices on the CHA instead of the appellants directly. By analyzing these precedents, the Tribunal highlighted the importance of procedural correctness in customs matters and the requirement for strict adherence to legal provisions. Ultimately, the Tribunal's decision was heavily influenced by the interpretations and principles laid down in these significant judgments, leading to the favorable outcome for the appellants.This detailed analysis of the judgment from the Appellate Tribunal CESTAT, Bangalore, showcases the critical issues addressed, the arguments presented, and the legal principles applied to arrive at the final decision in favor of the appellants.
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