2002 (9) TMI 608 - AT - Central Excise

Summary

Issues involved:
1. Whether the extended period of limitation for demanding duty is invokable in the present matter.

Analysis:
The appeal involved the question of whether the extended period of limitation for demanding duty was applicable in the case of M/s. S.N. Sunderson (Minerals) Ltd. The appellant argued that the extended period should not be invoked as they had received show cause notices in the past for similar demands. They contended that the High Court's interim order did not stay the proceedings, allowing them to proceed as per law. The appellant also cited legal precedents, including the Gokak Patel Volcart case, to support their argument that the extended period should not apply. On the other hand, the respondent argued that the appellant had failed to maintain statutory records and submit reports, intending to evade duty. They relied on the Madras Petrochem Ltd. case to assert that the extended period was justifiable due to the appellant's actions under the Self-Removal Procedure. The respondent also cited the BPL India Ltd. case to demonstrate the appellant's intention to avoid duty.

The Tribunal considered both parties' submissions and found that the Revenue had issued show cause notices to the appellant in the past, indicating awareness of the manufacturing and clearance activities. As such, the Tribunal concluded that if duty had not been paid or returns filed, the Revenue should have taken action within the normal limitation period specified in the Central Excise Act. The Tribunal referenced the Pushpam Pharmaceutical Co. Ltd. case to emphasize that mere omission does not constitute suppression when both parties are aware of the facts. They distinguished the Madras Petrochem Ltd. and BPL India Ltd. cases cited by the respondent, stating that the circumstances in the present matter were different. The Tribunal held that the extended period of limitation was not applicable in the case at hand and set aside the impugned orders solely on the aspect of time-limit.

In summary, the Tribunal's decision centered on whether the extended period of limitation for demanding duty applied in the case of M/s. S.N. Sunderson (Minerals) Ltd. The Tribunal found that the Revenue's awareness of the appellant's activities and the issuance of previous show cause notices precluded the invocation of the extended period. By referencing legal precedents and analyzing the specific facts of the case, the Tribunal determined that the extended period of limitation was not justified in this instance, leading to the setting aside of the impugned orders on the time-limit aspect.