2001 (8) TMI 846 - AT - Central Excise

Summary

Issues:
1. Allegations of manufacturing and clearing goods without payment of duty.
2. Demand for duty on articles of cement and windows/ventilators.
3. Invocation of extended period due to suppression with intent to evade duty.
4. Protection of limitation for the period in question.
5. Classification of activity of assembling windows/ventilators as manufacture.
6. Availability of Modvat credit on duty paid inputs.

Analysis:
1. The case involved allegations against the appellants for manufacturing and supplying building construction materials without paying duty, leading to a demand for duty on cement articles and windows/ventilators. The Commissioner confirmed the duties, imposed penalties, and ordered confiscation of goods, prompting the appeal.

2. Regarding the duty on articles of cement, the Tribunal noted the waiver granted under Notification No. 57/89-C.E. for a specific period, leading to a partial relief for that period. Citing precedents, the Tribunal extended the benefit of limitation to reduce the duty demand for the remaining amount.

3. For windows and ventilators, lacking a similar notification, the Tribunal analyzed the manufacturing process. The observations of the panchas and the Project Manager highlighted the transformation of individual sections into distinct commodities, meeting the test set by the Supreme Court in the Delhi Cloth case.

4. The Tribunal rejected the limitation plea for windows, emphasizing the existence and dispatch of completed windows. It also dismissed the applicability of Notification No. 118/85-C.E. due to the different usage context compared to the precedent cited.

5. The Tribunal addressed the awareness of duty levies based on the appellant's letter to the Board, concluding that the appellants were not under a bona fide belief regarding the excisability of the windows, as evidenced by their nomenclature usage.

6. Lastly, the Tribunal acknowledged the claim for Modvat credit on duty paid inputs for manufacturing windows, directing a re-evaluation of the duty confirmed to account for this credit. Consequently, the penalty amount was reduced due to the revised duty demand.

This comprehensive analysis of the judgment highlights the key legal issues addressed by the Appellate Tribunal in the case, providing a detailed overview of the decision-making process and legal reasoning applied to each issue raised.