Show cause notice defence requires disclosure of demand basis before objections, while disputed excise issues remain for the authority.

In a show cause stage challenge to alleged central excise short-levy on erection and installation of haulages and conveyors, the HC declined to decide disputed questions of manufacture or limitation, leaving those issues to the statutory authority. However, it held that the noticee was handicapped in preparing objections because the basis of the demand had not been disclosed. The Court therefore refused to interfere with the merits of the proceeding, but directed supply of the particulars used to compute the claim and permitted the petitioner to file objections thereafter. Substantive issues remained open for determination by the authority.

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Issues: Whether the High Court should interfere at the stage of a show cause notice and whether the petitioner was entitled to supply of particulars before filing objections.

Analysis: The dispute concerned alleged short-levy of central excise duty in relation to erection and installation of haulages and conveyors. The Court declined to decide the factual controversy on whether the activity amounted to manufacture of goods or the limitation objection, holding that such questions were for the statutory authority. At the same time, the petitioner's grievance that the demand particulars had not been supplied was accepted, as the petitioner had been handicapped in preparing its defence without those particulars.

Conclusion: The Court did not interfere with the merits of the show cause proceeding, but directed the respondents to supply the particulars used to compute the claim and allowed the petitioner to file objections thereafter.

Final Conclusion: The writ petition was disposed of with limited procedural relief to the petitioner, while all substantive issues were left open for decision by the statutory authority.

Ratio Decidendi: In proceedings at the show cause stage, the Court will ordinarily not adjudicate disputed questions of fact or limitation, but may require disclosure of the basis of the demand to enable an effective statutory defence.

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