2005 (2) TMI 716 - AT - Central Excise

Summary

Issues involved:
1. Extended period for duty demand based on RT-12 returns filed by the assessee.
2. Suppression of facts by the appellant leading to the invocability of the extended period.

Analysis:
1. Extended period for duty demand based on RT-12 returns:
The appellant, represented by Shri B.J. Mukherjee, Advocate, argued that the duty demand pertained to a period from 4/95 and 1995/1996, with the show cause notice issued on 7-4-1999. The advocate highlighted that the lower authority acknowledged that the appellant provided full details regarding the value of clearance, tariff sub-heading, and description of manufactured goods in their RT-12 returns. It was emphasized that any delay in checking these returns due to assessing officers' inefficiency should not warrant invoking an extended period of 5 years. Reference was made to a Tribunal decision in the case of Pranav Vikas (India) Limited, where it was held that an extended period is not applicable when the demand is based on RT-12 returns. Consequently, the appellant sought total dispensation of duty and penalty, which was supported by the arguments presented.

2. Suppression of facts by the appellant:
On the other hand, Shri N.K. Mishra, JDR representing the Revenue, relied on the Commissioner (Appeal)'s order, asserting that the appellant had suppressed facts, justifying the invocability of the extended period as mentioned in the show cause notice. However, after hearing both sides, the Tribunal found that the appellant consistently submitted RT-12 returns to the Department, and the lower adjudicating authority had already ruled that mere inefficiency in checking these returns should not be a valid reason for invoking the extended period. Additionally, the Tribunal referenced a judgment of the Hon'ble Supreme Court supporting this view. Consequently, the Tribunal agreed with the appellant's advocate that a prima facie case existed for total dispensation of duty and penalty. As a result, the Tribunal decided to dispense with the duty and penalty in this case, setting the next hearing for 18-4-2005.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT, KOLKATA, highlighted the arguments presented by both parties regarding the extended period for duty demand based on RT-12 returns and the allegation of suppression of facts by the appellant, leading to a decision in favor of the appellant for total dispensation of duty and penalty.