Department not entitled to collect differential duty unless show cause notice is issued under section 11 A and formalities pursuant to the issue of notice followed

Supreme Court: Revenue Department Cannot Collect Duty Without Show Cause Notice u/s 11A, Central Excises Act.

The Department of Revenue is not entitled to collect differential duty without issuing a show cause notice under Section 11A of the Central Excises & Salt Act, 1944, and following necessary formalities. The Supreme Court ruled in a case that non-compliance with these requirements invalidates the Department's claim for recovery. The Board emphasizes the importance of adhering to legal procedures to prevent revenue loss and warns that non-compliance will hold responsible officers accountable. The circular instructs all concerned parties to ensure compliance with these legal formalities to safeguard government revenue.