2022 (8) TMI 1260

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....ts notice for R1 and Mr.V.Sundareswaran, learned Senior Panel Counsel accepts notice for R2. Heard all learned counsel in detail. By consent expressed by all learned counsel and seeing as the challenge in the Writ Petitions is to show cause notices, final orders are passed disposing these Writ Petitions, even at the stage of admission. 2. The petitioners are in receipt of show cause notices dated 29.04.2022 issued in terms of Section 110AA read with Section 28AAA and Section 124 of the Customs Act, 1962 (in short 'Act') and assails on the same on various grounds. 3. Firstly, my attention is drawn to the fact that the contents of the show cause notices, when compared with the report of the investigating authority, corresponds to the former....

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....es these cases from the present one. 7. However, as far as a notice is concerned, the threshold is far higher and the burden lying upon the party that challenges a show cause notice far greater. In the case of Sri Kumaran Mills (supra), the order records that the notice in that case contains a statement by the Assessing Authority that the notices had been issued 'to implement the VSI-3 proposals received from the Enforcement Wing (Group-V) Coimbatore.' This is recorded in paragraph 4 of the order, as reported in 2019 (12) TMI 1055. It is based upon this honest submission by the Assessing Authority that the Court had been persuaded to take the view that there is not even a semblance of application of mind and on the contrary the authority h....

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....gn his own reasons for agreeing with the conclusion of the investigating authority. 11. In the case of Simplex (supra), the challenges to the show cause notice were manifold and the Court appears to have been persuaded in conclusion, that on the merits of the matter, the contracts constituted service contracts simplicitor and not composite works coming within the ambit of service tax under the provisions of Finance Act, 1994. 12. Before me, apart from the fact of non-application of mind on the part of the Assessing Officer, the only other point that is argued is as regards non-compliance with the ingredients of Section 28AAA of the Act. 13. Learned counsel for the petitioners would argue that Section 28AAA requires an allegation of collu....

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....rted, that is whether the wax candle manufactured by the petitioners satisfies the definition of handcrafted product. Learned counsel for the petitioners would submit that the petitioner company holds a certification from the Development Commissioner (Handicrafts), New Delhi. The Foreign Trade Policy requires, in the event of a dispute regarding the nature of the product, that the concerned assessee to produce a certification from the Development Commissioner. 17. In this case, though such certification has been produced before the investigating authority, it is for the petitioners to place such a certificate before the Assessing Authority. Since this has not been done thus far, even on this score, I would state that the present Writ Petit....