In Brief
The Supreme Court addressed whether an internal departmental order determining jurisdictional authority can be appealed before the show cause notice process is completed in an excise duty matter. The Court held that the Central Excise Act does not contemplate preliminary jurisdictional determinations before issuing a show cause notice. All issues—including whether a manufacturing process occurred and the resulting duty liability—must be considered in the show cause notice response. The internal order was merely a deference to High Court directions, not a final determination under the Act. The Court allowed the appeal, set aside the appellate orders, and remanded the matter for completion of proceedings under the show cause notice dated 21.03.2006, with the assessee given three weeks to submit its response."
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