2004 (8) TMI 491 - AT - Central Excise

Summary

Issues: Pre-deposit requirement under Rule 57-I and Rule 173Q, Limitation period for demand.

Pre-deposit Requirement under Rule 57-I and Rule 173Q:
The appellant was directed to pre-deposit a specific amount and penalties under Rule 57-I and Rule 173Q for the appeal hearing. The appellant's representative argued that the show cause notice was issued beyond the limitation period, citing instances where the matter was raised by CERA and IAD in previous visits. The consultant contended that the demand was time-barred due to the dates of the show cause notices. The Tribunal considered these arguments and found a prima facie case in favor of the appellant. Consequently, the Tribunal waived the pre-deposit amounts and penalties, staying the recovery until the appeal's disposal.

Limitation Period for Demand:
During the hearing, the appellant's consultant highlighted that the demand raised through show cause notices was beyond the limitation period. The consultant referenced specific dates when the issue was brought up by CERA and IAD during their visits to the appellant's unit. The consultant argued that the demand was time-barred due to the issuance dates of the show cause notices. On the other hand, the JDR was supposed to obtain reports to verify if the issue was raised by IAP and CERA and known to the Range Officer and Divisional Officer. However, the JDR had not acquired the report by that point. Upon reviewing the records and hearing both sides, the Tribunal acknowledged the existence of a prima facie case in favor of the appellant. Consequently, the Tribunal decided to waive the pre-deposit amounts and penalties, staying the recovery until the appeal's final disposal.