2021 (2) TMI 388

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....ed 28 November, 1997 issued under Section 14AA of the Act and the consequential actions taken pursuant thereto. 2. The primary grievance of the petitioner is that the impugned proceedings have been initiated without giving the petitioner an opportunity of hearing. It is submitted on behalf of the petitioner that in initiating the impugned actions the respondent authorities have not adhered to the principles of natural justice and no hearing has been afforded to the petitioner. It is further submitted on behalf of the petitioner that no subjective opinion regarding invocation either under Section 14A or under Section 14 AA of the Act has been recorded in the impugned notices. As such, there are no reasons in the impugned orders. It is als....

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....issioner of Central Excise has reason to believe that the credit of duty availed of or utilised under the rules made under this Act by a manufacturer of any excisable goods- (a) is not within the normal limits having regard to the nature of the excisable goods produced or manufactured, the type of inputs used and other relevant factors, as he may deem appropriate; (b) has been availed of or utilised by reason of fraud, collusion or any wilful mis-statement or suppression of facts, he may direct such manufacturer to get the accounts of his factory, office, depot, distributor or any other place, as may be specified by him, audited by a cost accountant nominated by him. (2) The [cost accountant or chartered accountan....

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....to submit a Report to the Commissioner within the time specified by the Commissioner. This audit is in addition to all other audits which may have been prescribed by any other law in force. The expenses of the audit as determined by the Commissioner are to be borne by the manufacturers which are subject to recovery proceedings as prescribed under the Act. The scheme of the section incorporates the observance of the principles of natural justice before any such material gathered in the audit is used against the assessee in any proceeding. 6. In Mohinder Singh Gill & Anr. vs. the Chief Election Commissioner, New Delhi & Ors.[1978 AIR 851], explaining as to what is meant by civil consequences Krishna Iyer, J. had said "Civil consequences un....