2006 (1) TMI 542 - AT - Central Excise

Summary

Issues:
1. Appeal against Order-in-Appeal passed by Commissioner (A), Central Excise & Customs, Aurangabad.
2. Recovery of outstanding Central Excise duty and interest.
3. Allegation of time-barred Show-Cause-Notice and willful suppression.
4. Interpretation of relevant provisions for recovery of outstanding dues.
5. Legality of issuing Show-Cause-Notice for recovery of dues under Section 11 of Central Excise Act, 1944.

Analysis:
1. The appeal was filed by the revenue against the Order-in-Appeal passed by the Commissioner (A), Central Excise & Customs, Aurangabad. The respondents were engaged in manufacturing PVC Floats and Twisted Nylon Wires under specific chapters of the Central Excise Tariff Act, 1985. They availed the facility for payment of Central Excise duty on an installment basis under erstwhile Rule 173G of the Central Excise Rules, 1944.

2. The dispute arose regarding the assessment of duty on goods cleared from April 2000 to Dec. 2000, resulting in an outstanding duty of Rs. 2,32,000. The Assistant Commissioner confirmed the duty amount and interest, along with penalties for contravention of rules. Goods worth Rs. 42,79,518 were detained for non-payment of the balance duty amount.

3. The respondent appealed the decision, arguing that the Show-Cause-Notice was time-barred and lacked allegations of willful suppression. The Commissioner (A) set aside the Order-in-Original, leading to the revenue's appeal to the Tribunal.

4. The Department contended that the Commissioner misunderstood the facts, emphasizing the outstanding amount of Rs. 2,32,000. They argued that the demand was not cleared through PLA or Cenvat, and the Show-Cause-Notice was not time-barred. The respondent's counsel referred to a Board Circular and argued against the necessity of the Show-Cause-Notice due to the facility of installment basis duty payment.

5. The Tribunal upheld the Commissioner (A)'s decision, finding the impugned order legally sustainable. It dismissed the revenue's appeal, emphasizing the due outstanding amount of Rs. 2,32,000 to be paid by the respondent for the release of detained goods. The Tribunal noted errors in issuing the Show-Cause-Notice and supported the Commissioner's decision based on the relevant provisions for recovery of outstanding dues.