Interim recovery in excise matters modified: notice-based recovery limited to six months, with representation rights preserved.

The interim arrangement was modified to permit recovery of dues where Section 11A notices had already been served, but recovery was confined to the six-month period covered by those notices. If service of notice was disputed, the Assistant Collector was to determine that issue. Where no notice had yet been issued, the respondents were permitted to issue notices, subject to the same six-month limit and without passing any recovery order unless the applicants were given an opportunity to make representations. The bank guarantees furnished by the applicants were also made available for realisation of dues, if any.

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Issues: Whether the interim arrangement should be modified to permit recovery where notices under Section 11A of the Central Excise and Salt Act had already been served, to permit issuance of notices where none had yet been issued, and to preserve the applicants' opportunity to make representations.

Analysis: The order substituted the earlier interim direction and provided that, where notices under Section 11A had already been served, the respondents could realise dues limited to the six-month period covered by the notices. Where service of notice was disputed, the Assistant Collector was to decide that issue. Where notices had not yet been issued, the respondents were permitted to issue them, but recovery was confined to six months and no order was to be passed without affording the applicants an opportunity to represent against the proposed action. The bank guarantees furnished by the applicants were also made available for realisation of dues, if any.

Outcome: The interim orders were modified, the amendment applications were dismissed as infructuous, and the applications stood disposed of accordingly.

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