2005 (10) TMI 294 - AT - Central Excise

Summary

Issues:
1. Benefit of exemption under Notification No. 76/86/CE for Man Made Metallic Yarn.
2. Time bar limitation for demands raised by the Revenue.

Analysis:
1. Benefit of Exemption under Notification No. 76/86/CE:
The case involves the respondents, manufacturers of Man Made Metallic Yarn, who were initially clearing the goods under the benefit of the exemption granted to Handicrafts as per Notification No. 76/86/CE. However, a sudden change occurred when the goods were no longer considered as Handicrafts. Despite a circular withdrawing the clarification on exemption of handicrafts, the department visited the factory at a later date. The Commissioner of Central Excise (Appeals) noted the delay in issuing a notice to the appellants and set aside the demands based on grounds of limitation. The Tribunal found that similar benefits of time bar had been granted in previous cases under identical circumstances, leading to the rejection of the Revenue's appeals in this case.

2. Time Bar Limitation for Demands Raised by the Revenue:
The Tribunal examined the delay in implementing the changed views of the Board and found no explanation for the officers' inordinate delay. The goods in question were considered exempted during the period of demand, and the industry had also surrendered registrations. As a result, the demands made by the Revenue were deemed barred by limitation. The Tribunal concluded that there were no merits in the appeals filed by the Revenue and rejected them on the grounds of limitation, citing the lack of contribution from the respondents to warrant invoking a larger period of demand. The judgments were pronounced in court, upholding the decision to reject the Revenue's appeals due to the time bar limitation.