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2006 (12) TMI 313 - AT - Central Excise
Issues:
Appeal against demand of duty and penalty based on the interpretation of Notification No. 67/95 regarding Steel Formers; Time bar for invoking larger period for demands. Analysis: The appeals of two companies, M/s. SMM Steel Re-rolling Mills (P) Ltd. and M/s. Paragon Steels (P) Ltd., both manufacturers of MS Ingots, were considered together due to a common question of law and facts. The Revenue had contested that the benefit of Notification No. 67/95 was not applicable to Steel Formers, leading to demands of duty and penalties for the periods 1998-1999 and 1999-2000. Despite being noticed, the appellants were absent during the proceedings. During the hearing, the Counsel argued that the demands were time-barred as the appellants had previously availed Modvat credit, with the department's knowledge of their use of Steel Formers. The Counsel cited the Supreme Court ruling in Tamil Nadu Housing Board v. CCE, Madras - 1994 (74) E.L.T. 9 (S.C.) to support the time bar defense. The Judge reviewed the submissions and the Commissioner (Appeals)'s observations on the time bar plea, noting that relevant declarations were filed by the appellants for Modvat credit on HR Sheets used in manufacturing Steel Formers. The Judge emphasized that the Department was aware of these facts, as they were recorded in the statutory RG 23C Register. Consequently, the demands for the larger period were deemed time-barred, as the Department should have taken timely action based on the declarations made by the appellants. The Judge concluded that there was no deliberate duty evasion, and the demands were time-barred as per the cited Supreme Court judgment. Therefore, the impugned orders were set aside, and the appeals were allowed with any consequential relief. This judgment highlights the importance of timely action by the Department based on declarations made by taxpayers, as well as the significance of legal precedents in determining the applicability of time bars in duty-related matters.
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