Court sets aside certificates/reports, demands reconsideration within 3 months. Follows Tripura HC's directions.

The court set aside the certificates/reports and demand notice, remanding the matter to the IAC for reconsideration in compliance with natural justice principles and legal provisions within three months. The IAC was directed to follow Tripura HC's directions in a similar case. The writ petition was disposed of with no costs.

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Issues Involved:
1. Validity of the certificates/reports issued by the Commissioner of Central Excise.
2. Legality of the demand notice issued by the Assistant Commissioner of Central Excise.
3. Compliance with principles of natural justice by the Investment Appraisal Committee (IAC).

Summary:

Issue 1: Validity of Certificates/Reports Issued by the Commissioner of Central Excise
The petitioner challenged four certificates/reports dated 31-12-2012 issued by the Commissioner of Central Excise, which declared the petitioner's claim of Rs. 18,66,86,576.29 as inadmissible as investment. The petitioner argued that the IAC did not assign reasons for its findings and did not provide any notice or opportunity to be heard before making its decision. The court noted that the IAC must provide reasons for rejecting investments and must follow principles of natural justice, as established in Dharampal Satyapal Ltd. vs. Union of India & Ors. [2010 (1) GLT 744].

Issue 2: Legality of the Demand Notice Issued by the Assistant Commissioner of Central Excise
The demand notice dated 26-10-2013, issued based on the IAC's findings, directed the petitioner to pay excise duty of Rs. 18,66,86,576.29 along with interest. The court found that since the IAC's decision was made without following due process, the demand notice was also unsustainable. The court set aside the impugned demand notice and remanded the matter to the IAC for reconsideration in accordance with the law.

Issue 3: Compliance with Principles of Natural Justice by the IAC
The court emphasized that the IAC must give notice to the petitioner specifying reasons for any tentative findings and allow the petitioner to show cause. The IAC's failure to provide such notice and opportunity to be heard was a violation of principles of natural justice. The court reiterated that the IAC must follow the directions laid down in the Dharampal Satyapal Ltd. case and ensure fair opportunity for the petitioner to present their case.

Conclusion:
The court set aside the impugned certificates/reports and the demand notice, remanding the matter to the IAC for reconsideration in compliance with the principles of natural justice and the relevant legal provisions. The court directed the IAC to complete the exercise within three months and act in accordance with the directions given by the Tripura High Court in a similar case. The writ petition was disposed of with no order as to costs.

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