Valid show cause notice required for excise duty recovery; a mere quantified demand under Rule 13 was insufficient.

A demand of excise duty could not be sustained because no valid show cause notice under section 11A was issued. Rule 13 of the Central Excise Rules, 1944 only allowed export without payment of duty and did not provide machinery for recovery of duty. Where duty was payable, the proper course was to proceed under section 11A, which required service of a notice asking the person to show cause why the stated amount should not be paid. A notice that merely quantified the demand, without requiring a reply on cause, was insufficient, and a later opportunity to respond or be heard could not cure that defect. The demand was therefore unsustainable.

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Issues: Whether a demand of excise duty could be sustained when no valid show cause notice under section 11A was issued and the notice of demand was issued under Rule 13 of the Central Excise Rules, 1944.

Analysis: Rule 13 of the Central Excise Rules, 1944 only provided for permitting export without payment of duty and did not contain any machinery for recovery of duty. Where duty became payable, the proper course was to proceed under section 11A of the Central Excises and Salt Act, 1944, which mandated service of a notice calling upon the person to show cause why the amount specified should not be paid. The notice in question merely demanded a quantified sum and did not expressly require the appellant to show cause. A later opportunity to file a reply or to be heard personally could not cure the absence of the statutory notice, and the demand could not be supported on grounds not indicated in the notice.

Conclusion: The demand was unsustainable for want of a valid show cause notice, and the appeal was allowed.

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