1989 (8) TMI 89 - HC - Central Excise

Court Invalidates Collector's Withdrawal of Exemption for Liquid Glucose Price Lists

The Court held that the Collector's actions in withdrawing the exemption from filing price lists for Liquid Glucose were invalid due to non-compliance ... Show cause notice - Time for reply Issues:1. Exemption from filing price lists under Rule 173-C of the Central Excise Rules.2. Show cause notice issued by the Collector of Customs and Central Excise.3. Time granted for replying to show cause notice.4. Compliance with instructions regarding the time for replying to show cause notices in Central Excise cases.Exemption from Filing Price Lists:The petitioner, a manufacturing company, sought exemption from filing price lists for Liquid Glucose due to significant market price fluctuations. The Collector initially granted this exemption but later issued a show cause notice proposing to withdraw it. The petitioner was allowed to declare prices on gate passes for specific consignments. The exemption was reviewed, leading to the show cause notice challenging the continuation of the exemption.Show Cause Notice Issued by the Collector:The Collector issued a show cause notice to the petitioner, alleging that the market price fluctuations of Liquid Glucose did not justify the exemption from filing price lists. The petitioner was given ten days to respond and was offered a personal hearing. The petitioner's counsel requested an extension of time to reply, citing the standard practice of allowing 30 days for responses in Central Excise cases.Time Granted for Replying to Show Cause Notice:The petitioner's counsel argued that the ten-day period provided for responding to the show cause notice was insufficient, contrary to the instructions requiring a minimum of one month for replies in Central Excise cases. The counsel requested at least one month to prepare a detailed response, but the Collector proceeded to withdraw the exemption after the stipulated ten-day period without granting an extension.Compliance with Instructions Regarding Time for Replying to Show Cause Notices:The petitioner contended that the show cause notice and subsequent withdrawal of exemption were invalid due to the Collector's failure to comply with the instructions mandating a minimum of one month for parties to respond to show cause notices in Central Excise cases. The Court held that the Collector's actions were in violation of the instructions, quashed the notice and withdrawal order, and allowed the authorities to proceed in accordance with the law, emphasizing the importance of adherence to prescribed timelines in such matters.