2004 (3) TMI 462 - AT - Central Excise

Summary

Issues:
1. Appeal challenging the order passed by the Commissioner (Appeals) on the grounds of limitation.
2. Applicability of time-bar in the case.
3. Relevance of the ground of appeal in relation to the Commissioner's order.
4. Frivolous nature of the appeal filed by the Revenue.

Analysis:
1. The appeal before the Appellate Tribunal challenged the order of the Commissioner (Appeals) dated 14-7-2003, where the Commissioner concluded that the demand is time-barred. The Commissioner noted that the issue was within the Department's knowledge since December 1996, and a show cause notice was issued on similar grounds in December 1996, which was dropped later. The audit objection in August 1999 reiterated the facts known to the Department earlier. The Commissioner found the demand time-barred based on the delay in issuing the show cause notice. Citing various legal precedents, the Commissioner allowed the appeal solely on the grounds of time-bar.

2. The ground of appeal raised by the Revenue contended that the Commissioner erred in allowing the appeal based only on the time-bar issue without delving into the case's merits. The Revenue argued that as per a Supreme Court judgment, where the assessee operates under Self-Removal Procedure, the obligation to make proper declarations lies with the assessee, making the case fall outside the time-limit. The Revenue criticized the Commissioner for not considering the case's merits in light of the Supreme Court judgment.

3. The Tribunal, after hearing the arguments, found the ground taken in the appeal to be irrelevant to the Commissioner's decision on the limitation issue. The Tribunal observed that since the facts were known to the Department as early as August 1998, the show cause notice issued in April 2001 exceeded the permissible time limit. The Tribunal dismissed the appeal, emphasizing the lack of merit in challenging the Commissioner's finding on the limitation aspect.

4. The Tribunal expressed disappointment in the frivolous nature of the Revenue's appeal, deeming it as causing unnecessary trouble to the assessee and burdening the Tribunal. The Tribunal directed the Registry to send a copy of the order to the Board Chairman for considering measures to ensure more careful consideration before filing appeals against Commissioners' orders, aiming to prevent such frivolous appeals in the future.