2006 (2) TMI 399 - AT - Central Excise

Summary

Issues: Time limitation for confirming demands despite goods destruction by fire.

In the judgment by Dr. S.L. Peeran, the appeal arose from Order-in-Original No. 9/04, confirming duty of Rs. 1,04,376 under Section 11A(2) along with interest and penalty. The central issue revolved around the time lapse of 4 years after the goods were destroyed by fire on 1-6-2000 in the appellant's factory. The Range Superintendent conducted an investigation, recorded the Managing Director's statement, and submitted a report detailing the damage to excisable goods. The appellant sought remission of duty on 8-6-2000, which was not addressed by the authorities. However, a show cause notice was issued on 19-3-2004, leading to the question of whether the notice was time-barred.

The judgment analyzed the circumstances surrounding the destruction of goods, the investigation conducted by the Superintendent, and the absence of any grounds for invoking a larger time period in the show cause notice. It was noted that there was no suppression or mis-declaration of facts, and the show cause notice issued after a lapse of four years was deemed time-barred. Consequently, after due consideration and hearing from both sides, it was held that the demands were indeed barred by time, leading to the setting aside of the impugned order and allowing the appeal. The decision was pronounced and dictated in open court, providing clarity on the time limitation aspect in confirming demands post goods destruction.