M/S.Gopalji Ketaki Khara Masala vs. Commissioner,Central Excise

Heard Mr. R.P. Kar, learned Senior Advocate appearing along with Mr. A.N. Ray, learned counsel for the petitioners and Mr. P.K. Panda, learned Sr. Standing Counsel (CT & GST) Department.

The petitioners have filed this writ petition seeking to quash the demand-cum-show cause notice dated 23.11.2015 vide Anenxure-1, by which demand of Rs.12,52,17,600.00 has been raised against the petitioners.

Mr. R.P. Kar, learned Senior Advocate appearing for the petitioners contended that since the petitioners’ unit has already been closed in the year 2013, the demand-cum-show cause notice issued in the year 2015 and the quantum of demand, which has been raised by the authority cannot be sustained in the eye of law.

Mr. P.K. Panda, learned Sr. Standing Counsel (CT & GST) Department raised preliminary objection with regard to maintainability of the writ petition as because the petitioners have approached this Court against the notice of demand-cum-show cause instead of filing the reply before the authority against such notice. Therefore, the present writ petition against notice of demand-cum-show cause cannot be maintainable. Therefore, he seeks for dismissal of the writ petition.

Having heard learned counsel for the parties and after going through the record, as it appears the petitioners have approached this Court against the demand-cum-show cause notice dated 23.11.2015, by which demand has been raised for an amount of Rs.12,52,17,600.00 against the petitioners. The reason for imposition of such demand has been explained in Sl. No. 2 of the impugned order. Admittedly the petitioners have not filed their reply to the said demand-cum-show cause notice and straightway have come before this Court by filing the present writ petition. Against notice of demand-cum-show cause though the writ petition was entertained in the year 2016 and interim order was passed by this Court, but at the outset, it appears that the notice of demand-cum-show cause involves factual disputes, which cannot be adjudicated in the present writ petition.

In view of the above, the writ petition stands disposed of permitting the petitioners to file their reply against the demand-cum-show cause notice under Annexure-1 before the authority within a period of six weeks from today. In the event such a reply is filed, the authority shall consider the same and pass appropriate order by giving opportunity of hearing to the petitioners as expeditiously as possible.

Interim order passed earlier stands vacated.