2004 (8) TMI 587 - AT - Central Excise

Summary

Issues:
1. Appeal against CCE (Appeals) decision on remission of duty.
2. Interpretation of duty demands and issuance of fresh SCN.

Analysis:
1. The Appellate Tribunal CESTAT, Mumbai heard an appeal by Revenue against the decision of the CCE (Appeals) regarding the remission of duty amounting to Rs. 7 lakhs. The CCE (Appeals) had directed the Respondent to apply for remission to the Commissioner of Central Excise, Ahmedabad-II, following a fire incident at the respondent's factory on 8-1-1996. The Commissioner was to assess the goods lost and decide on remitting the duty. It was specified that if the Commissioner rejected the remission application, a fresh notice of duty demand could be issued. The Tribunal upheld the CCE (Appeals) decision, emphasizing that duty demands could only arise after the final decision on remission, as per Rule 49(1) and Section 11A(3)ii(c) of the Central Excise Rules, 1944.

2. The appeal also raised the issue of whether the issuance of a fresh show-cause notice (SCN) would be time-barred if the remission of duty application was rejected. The Revenue contended that the existing SCN should be revived instead of issuing a fresh one. The Tribunal clarified that duty demands could only be made within six months of the duty rate being determined post-remission decision. Any demands made earlier would be based on presumptions and not valid. Therefore, the Tribunal confirmed the CCE (Appeals) decision, stating that duty demands could only be issued after the final decision on remission, and there was no error in the CCE (Appeals) decision. The appeal was disposed of accordingly.