Rule 57E certificate denial unsustainable when suppression was not alleged in the original show cause notices.

A certificate under Rule 57E of the Central Excise Rules, 1944 could not be denied on the basis of alleged suppression of facts where the earlier show cause notices and the order-in-original did not contain any such allegation. The department admitted that it became aware of the alleged suppression only after receiving the Cost-Audit report, and the first notice raising that allegation was issued later. Denial of the certificate on a ground not forming part of the original notice or adjudication record was therefore unsustainable, and the Revenue's appeal was rejected.

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Issues: Whether a certificate under Rule 57E of the Central Excise Rules, 1944 could be denied on the ground of suppression of facts when the relevant show cause notices and the order-in-original did not allege such suppression or mis-declaration.

Analysis: The allegation of suppression was not contained in the earlier show cause notices on which the duty payment rested. The department itself stated that it became aware of the alleged suppression only upon receipt of the Cost-Audit report, and the first notice incorporating such allegation was issued later. In these circumstances, the denial of the certificate in 1998 on the basis of an allegation not then forming part of the notices or adjudication record was found unsustainable.

Conclusion: The denial of the certificate was not maintainable, and the Revenue's appeal was rejected.

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