In Brief
Bombay Dyeing challenged a Central Excise demand for 1981-1985 as barred by limitation in a provisional assessment case. The High Court had directed the Department to issue a Show Cause Notice. Bombay Dyeing argued no express provisional assessment order existed, so no SCN was needed. The Supreme Court held the Department must follow the High Court's directions to issue the SCN. An assessee cannot escape provisional assessment by claiming the lack of an express order; the substance of the matter—that provisional assessment was in effect—binds both parties. The Court emphasized authorities must afford a hearing opportunity as mandated by the High Court."
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