2007 (5) TMI 447 - AT - Central Excise

Summary

Issues involved: Dismissal of appeal due to non-compliance with pre-deposit order, short levy of duty on various construction materials, dispute over valuation and dutiability, acceptance of Commissioner's orders by revenue, limitation of demand under Section 11A.

Dismissal of Appeal: The appeal was dismissed initially for non-compliance with the pre-deposit order, but it was remanded by the Supreme Court for further consideration.

Short Levy of Duty: The appellant, a civil contractor, faced allegations of short levy of duty on various construction materials like Aluminium Doors, Windows, Curtain Walls, etc., leading to duty evasion demands and penalties imposed by the Commissioner of Central Excise, Delhi-I.

Dispute over Dutiability: The appellant argued that the issue had been settled in their favor in previous adjudication and appellate orders, citing various show cause notices and orders that favored them. They relied on legal precedents to support their position that the revenue cannot change its stance on dutiability based on different assessment periods.

Valuation Dispute: The dispute was characterized by the revenue as a matter of overvaluation rather than dutiability. The appellant's contention was that the goods were undervalued, leading to short levy, while the revenue argued that the issue was primarily about valuation and should be referred back to the original authority for a decision.

Acceptance of Commissioner's Orders: The Commissioner's orders, which held that the appellant's activities did not attract Central Excise Duty, were accepted by the revenue, as indicated in various letters and communications to the appellant.

Limitation of Demand: The demand under the notice dated 18-6-2004 was found to be time-barred under the proviso to Section 11A of the Central Excise Act, as it involved no suppression or misstatement of facts with intent to evade duty payment.

Conclusion: Considering the settled nature of the issue between the parties based on previous orders, the present appeals were allowed, setting aside the impugned order. Additionally, the demand under the notice dated 18-6-2004 was deemed time-barred due to limitations under the Central Excise Act.