Appellate Tribunal quashes excise duty demand without show cause notice

The Appellate Tribunal CEGAT, Court No. III in New Delhi allowed the appeal of the appellants, manufacturers of ayurvedic medicines, by quashing the demand notice for excise duty of Rs. 60,077.73 as it was issued without a show cause notice. The Tribunal clarified that this decision does not bar the department from initiating proceedings for duty demand in compliance with the law.

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The Appellate Tribunal CEGAT, Court No. III in New Delhi allowed the appeal of the appellants who manufacture ayurvedic medicines. The Tribunal quashed the demand notice issued by the Superintendent for payment of excise duty amounting to Rs. 60,077.73 as it was not preceded by a show cause notice. The Tribunal stated that this decision does not prevent the department from initiating proceedings in accordance with the law for raising the duty demand.

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