COMMISSIONER OF CENTRAL EXCISE, ALLAHABAD Vs. M/S J.R. ORGANICS LTD
1. Delay condoned. Appeal admitted.2. This appeal takes exception to the final Order No. 71005 of 2018 dated 20.02.2019 in appeal NO. E/1686/2008-EX (DB) passed by the CESTAT, Regional Bench, Allahabad, whereby the show cause notice issued by the Central Excise Commissionerate dated 08.11.2017 came to be quashed on the solitary ground that the same was vague having failed to specifically mention that the respondent valued their goods, transferred to other units, at a value lesser than the value as per CAS-4 Standards.3. We have heard counsel for the parties. In our opinion, the show cause notice opens with the statement which adverts to breach of cost accounting standards in the following words:?Whereas M/s. J.R. Organics Ltd. Captainganj distillery, Captaingaj have contravened the provisions of Section 4 of the Central Excise Act, 1944 (here-inafter referred to as ‘the said Act?) read with Rule 4, 6 and 11 of the Central Excise Rules,2002 in as much as they have (Indulged in evasion of Central Excise duty by suppressing their assessable value and during the period April 2003 to March 2006 they have evaded Central Excise Duty to the tune of Rs. 1,43,34,224=00 by way of not paying the duty on the specific values arrived at by their Cost Accountant based on cost accounting standards and in terms of Section 4 of Central Excise Act, 1944 read with Rule 8 and Rule 9 of Central Excise Valuation Rules 2000.? 4. In any case, the respondent understood the purport of the show cause notice and had also submitted representation on the premise that the value of their goods in question was not lesser than the value as per CAS-4 Standards. That is the core issue to be considered by the Tribunal.5. We hold that the Appellate Tribunal has misread the subject show cause notice. Hence, the conclusion reached on such erroneous basis cannot be sustained. The matter will now proceed before the Tribunal for consideration afresh on its own merits in accordance with law. Needless to observe that all consequential steps taken on the basis of the stated show cause notice will be subject to the final view taken by the Tribunal in the remanded proceedings.
1[ds]3. We have heard counsel for the parties. In our opinion, the show cause notice opens with the statement which adverts to breach of cost accounting standards in the following words:?Whereas M/s. J.R. Organics Ltd. Captainganj distillery, Captaingaj have contravened the provisions of Section 4 of the Central Excise Act, 1944 (here-inafter referred to as ‘the said Act?) read with Rule 4, 6 and 11 of the Central Excise Rules,2002 in as much as they have (Indulged in evasion of Central Excise duty by suppressing their assessable value and during the period April 2003 to March 2006 they have evaded Central Excise Duty to the tune of Rs. 1,43,34,224=00 by way of not paying the duty on the specific values arrived at by their Cost Accountant based on cost accounting standards and in terms of Section 4 of Central Excise Act, 1944 read with Rule 8 and Rule 9 of Central Excise Valuation Rules 2000.?4. In any case, the respondent understood the purport of the show cause notice and had also submitted representation on the premise that the value of their goods in question was not lesser than the value as per CAS-4 Standards. That is the core issue to be considered by the Tribunal5. We hold that the Appellate Tribunal has misread the subject show cause notice. Hence, the conclusion reached on such erroneous basis cannot be sustained. The matter will now proceed before the Tribunal for consideration afresh on its own merits in accordance with law. Needless to observe that all consequential steps taken on the basis of the stated show cause notice will be subject to the final view taken by the Tribunal in the remanded proceedings.
### Instruction:
Speculate on the likely judgment (yes (1) or no (0) to the appeal) and then delve into the case proceeding to elucidate your prediction, focusing on critical sentences.

### Input:
1. Delay condoned. Appeal admitted.2. This appeal takes exception to the final Order No. 71005 of 2018 dated 20.02.2019 in appeal NO. E/1686/2008-EX (DB) passed by the CESTAT, Regional Bench, Allahabad, whereby the show cause notice issued by the Central Excise Commissionerate dated 08.11.2017 came to be quashed on the solitary ground that the same was vague having failed to specifically mention that the respondent valued their goods, transferred to other units, at a value lesser than the value as per CAS-4 Standards.3. We have heard counsel for the parties. In our opinion, the show cause notice opens with the statement which adverts to breach of cost accounting standards in the following words:?Whereas M/s. J.R. Organics Ltd. Captainganj distillery, Captaingaj have contravened the provisions of Section 4 of the Central Excise Act, 1944 (here-inafter referred to as ‘the said Act?) read with Rule 4, 6 and 11 of the Central Excise Rules,2002 in as much as they have (Indulged in evasion of Central Excise duty by suppressing their assessable value and during the period April 2003 to March 2006 they have evaded Central Excise Duty to the tune of Rs. 1,43,34,224=00 by way of not paying the duty on the specific values arrived at by their Cost Accountant based on cost accounting standards and in terms of Section 4 of Central Excise Act, 1944 read with Rule 8 and Rule 9 of Central Excise Valuation Rules 2000.? 4. In any case, the respondent understood the purport of the show cause notice and had also submitted representation on the premise that the value of their goods in question was not lesser than the value as per CAS-4 Standards. That is the core issue to be considered by the Tribunal.5. We hold that the Appellate Tribunal has misread the subject show cause notice. Hence, the conclusion reached on such erroneous basis cannot be sustained. The matter will now proceed before the Tribunal for consideration afresh on its own merits in accordance with law. Needless to observe that all consequential steps taken on the basis of the stated show cause notice will be subject to the final view taken by the Tribunal in the remanded proceedings.

### Response:
1

### Explanation:
3. We have heard counsel for the parties. In our opinion, the show cause notice opens with the statement which adverts to breach of cost accounting standards in the following words:?Whereas M/s. J.R. Organics Ltd. Captainganj distillery, Captaingaj have contravened the provisions of Section 4 of the Central Excise Act, 1944 (here-inafter referred to as ‘the said Act?) read with Rule 4, 6 and 11 of the Central Excise Rules,2002 in as much as they have (Indulged in evasion of Central Excise duty by suppressing their assessable value and during the period April 2003 to March 2006 they have evaded Central Excise Duty to the tune of Rs. 1,43,34,224=00 by way of not paying the duty on the specific values arrived at by their Cost Accountant based on cost accounting standards and in terms of Section 4 of Central Excise Act, 1944 read with Rule 8 and Rule 9 of Central Excise Valuation Rules 2000.?4. In any case, the respondent understood the purport of the show cause notice and had also submitted representation on the premise that the value of their goods in question was not lesser than the value as per CAS-4 Standards. That is the core issue to be considered by the Tribunal5. We hold that the Appellate Tribunal has misread the subject show cause notice. Hence, the conclusion reached on such erroneous basis cannot be sustained. The matter will now proceed before the Tribunal for consideration afresh on its own merits in accordance with law. Needless to observe that all consequential steps taken on the basis of the stated show cause notice will be subject to the final view taken by the Tribunal in the remanded proceedings.
