High Court directs fair adjudication of Central Excise Show Cause Notices for clandestine goods removal.

The High Court directed the Commissioner of Central Excise to adjudicate Show Cause Notices issued to two companies involved in clandestine removal of goods, providing them a fair opportunity for a personal hearing and decision based on merits. The Court did not decide on the substantial question of law regarding the interpretation of "the person chargeable with the duty" in Section 11A of the Central Excise Act, leaving it open for future consideration. The appeals were disposed of without costs, and related petitions were closed.

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Issues:
Challenge to the order passed by the Customs, Excise and Service Tax Appellate Tribunal under Section 35G of the Central Excise Act, 1944 regarding the interpretation of "the person chargeable with the duty" in Section 11A and the issuance of Show Cause Notices to two companies involved in clandestine removal of goods.

Analysis:
The appeals were filed by the Revenue challenging the Tribunal's order dated 8-3-2007. The substantial question of law revolved around the interpretation of the words and phrase "the person chargeable with the duty" in Section 11A of the Central Excise Act, 1944, specifically in the context of two companies jointly involved in the clandestine removal of goods. The Tribunal's interpretation was questioned by the Revenue.

The High Court heard the arguments presented by the counsels for both the appellant and respondents. The Tribunal's order had been given effect to, and Show Cause Notices had been issued to both companies by the Department. One of the companies sought certain documents to respond to the Show Cause Notices, while the actions of the other company were not clear.

Due to the passage of time and the Department issuing Show Cause Notices afresh, the High Court deemed it unnecessary to adjudicate the appeals and decide the substantial question of law. The Court directed the Commissioner of Central Excise, Tiruchirapalli, to adjudicate the Show Cause Notices after providing a reasonable opportunity to the assessees for a personal hearing, and to make a decision based on merits and in accordance with the law. The substantial question of law was left open for consideration in the future.

In conclusion, the appeals were disposed of by instructing the Commissioner to proceed with adjudicating the Show Cause Notices, affording a fair opportunity to the assessees. The Court did not award any costs, and the connected miscellaneous petitions were closed as a result of the judgment.

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