Held - We may also note that with effect from 15.10.2020 i.e., after the impugned show cause notice was issued, Rule 142(1A) has undergone a change, inasmuch as the word ‘shall’ has been replaced with ‘may’. As to what would be the impact of the amendment need not be considered by us in this case, as admittedly the show cause notice was issued prior to 15.10.2020 i.e., on 21.05.2020.

Therefore, having regard to the position which.....

Held - By master circular No.1053/02/2017 dated 10.03.2017, issued by the Central Board of Excise and Customs, it is mandatory to issue a pre-show cause notice for consultation, prior to issue of a show cause notice, in cases involving demands of duty above Rs.50,00,000/-(Rupees fifty lakhs only).

A perusal of the above extracted portions of the circular clearly indicates that the pre-show cause notice consultation is made mandatory from.....

Held - This is precisely the reason the Central Board in its master circular dated 10th March, 2017 has directed that the authority, who has issued the pre-consultation notice, should be the authority, who shall issue the show cause notice and adjudicate the same in cases where pre-consultation does not resolve the dispute.

we find that the process of pre-consultation appears to have not been a statutory procedure but a procedure carved .....

Held – While issuing an intimation, the proper officer in the notice could not have said that failure on the part of the noticee may entail the consequence of recovery of the entire amount with penalty and interest. 

In the intimation, the dealer should be informed that if he fails to make the payment, the next step in the process will be issue of a show cause notice. Once there is a show cause notice in the Form GST DRC – 01 in.....

Held - We are of the view that the contesting respondents were mandatorily required to have a pre-show cause notice consultation with the petitioner-company and that having not being done in the instant matter, the proceedings initiated by the contesting respondents via the impugned show cause notice are non-est in law.

Thus, having regard to the foregoing, the matter is remanded to the contesting respondents with the following direction.....

Held -  We are of the view that “voluntary statements” recorded before the Senior Intelligence Officer cannot constitute pre-show cause notice consultation as envisaged in the paragraph 5 of the 2017 Master Circular

A voluntary statement is at best a one-way dialogue made before an authority which does not take a decision as whether or not next steps in the matter are required to be taken. Therefore, it cannot be said that volun.....