2007 (10) TMI 479 - AT - Central Excise

Summary

Issues involved: Appeal against the order of the Commissioner (Appeals) regarding clearance of goods in excess of permitted value and imposition of duty and penalty.

Summary:
The appellant, a 100% EOU, was granted permission to clear final excisable goods for DTA sales valued at Rs. 5,02,907/-, but cleared goods valued at Rs. 14,19,114/-, exceeding the permitted value. Show cause notices were issued proposing duty demands. The original authority confirmed demands and imposed penalties. The Commissioner (Appeals) upheld the demand of Rs. 2,39,331/-. The appeal contended that repeated show cause notices on the same transactions were impermissible and the time limit restriction imposed in 1995 should not apply to clearances made under permission granted in 1992.

The Tribunal agreed with the appellant's submissions, stating that clearances under the 1992 permission should not be bound by the 1995 restriction. Issuing multiple show cause notices on the same clearances and confirming separate demands was deemed impermissible. The second demand included the amount from the earlier notice, which was considered illegal. Since no appeal was filed against the first demand, the Commissioner (Appeals) order based on the second notice was set aside, and the appeal was allowed with consequential relief.