Show cause notice validity turns on clear factual basis and absence of prejudice, despite omission of a cited notification.

A show cause notice is valid where it clearly sets out the factual basis of the proposed duty demand, even if it does not expressly cite the withdrawing notification. The notices here alleged that yarn was entered at the spindle stage, duty was paid only at that stage, and the resulting doubled or multifold yarn was cleared without further duty; that was held sufficient to inform the assessee of the case to meet. Since the objection about omission of the notification was raised only in appeal and no prejudice was shown, the notices were not treated as vague or unintelligible. The duty demand, along with penalty and interest, was therefore sustained for the post-18.05.1995 period.

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Issues: Whether the show cause notices for the period from 18.05.1995 onwards were invalid for want of specific reference to the withdrawal of exemption under the notification dated 18.05.1995, and whether the demand could be sustained despite no prejudice being shown.

Analysis: The duty liability initially stood governed by the trade notice permitting clearance at the single-yarn stage, but the subsequent notification dated 18.05.1995 withdrew that exemption. The demand notices disclosed the factual basis of the allegation, namely that yarn was entered at the spindle stage, duty was paid only at that stage, and the resultant doubled or multifold yarn was cleared without payment of duty. The notices therefore contained sufficient particulars to inform the assessee of the basis of the proposed demand. The objection that the notification was not specifically mentioned was raised for the first time in the appeal and no prejudice was shown. A mere omission to refer to the withdrawing notification did not render the notices vague or unintelligible.

Conclusion: The notices were valid for the period after 18.05.1995, and the demand for duty, penalty, and interest was sustainable in favour of the Revenue.

Ratio Decidendi: A show cause notice is not invalid if it conveys the factual basis of the demand with sufficient clarity and the assessee suffers no prejudice, even where a specific notification is not expressly cited.

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