Excise duty demand without show cause notice is unsustainable and cannot support recovery.

An excise duty demand issued by the Superintendent without a show cause notice and without adjudication was not legally enforceable. Because the manufacturer was given no opportunity to contest the proposed demand, the communication could not serve as a valid basis for recovery of duty. The demand was therefore held unsustainable and set aside, while the department was left free to initiate fresh proceedings in accordance with law.

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Issues: Whether an excise duty demand raised by the Superintendent without a show cause notice and without adjudication could be sustained in law.

Analysis: The demand was not the result of any adjudicatory order preceded by a show cause notice and the manufacturer was not given an opportunity to meet the proposed demand. Such a communication could not be treated as a valid basis for recovery of duty.

Conclusion: The demand was unsustainable and was set aside, leaving the department free to initiate proceedings in accordance with law.

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