Pre-show-cause consultation requirement enforced in duty demand matters; impugned notice kept in abeyance pending consultation.

A show-cause notice in a duty demand matter was challenged on the ground that it had been issued without the pre-show-cause consultation required by the Master Circular where the demand exceeded the prescribed threshold. The procedural requirement of prior consultation was treated as mandatory before further steps could proceed, and the authorities were directed to undertake that consultation. The impugned notice was to remain in abeyance until the next hearing.

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Issues: Whether the impugned show-cause notice issued in a duty demand matter could be sustained without the pre-show cause notice consultation mandated by the Master Circular.

Analysis: The petition raised a procedural challenge founded on the requirement of pre-consultation before issuance of a show-cause notice where the duty demand exceeded the prescribed threshold. The notice was stated to have been issued without following that mandatory requirement. In view of the submissions and the need to first complete the consultation process, the authorities were directed to undertake pre-consultation and keep the notice in abeyance until the next hearing.

Conclusion: The respondents were directed to carry out pre-consultation and keep the impugned show-cause notice in abeyance.

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