2008 (5) TMI 532 - AT - Central Excise

Summary

Issues involved: Duty demand on cement concrete pipes manufactured by a government department, eligibility for duty exemption u/s Notification No. 105/80, time limitation for issuing show cause notice.

Duty demand on cement concrete pipes: The appeal was against a duty demand of Rs. 1,06,160 confirmed by the Additional Collector of Central Excise for the manufacture and clearance of cement concrete pipes during 1979-80, 1980-81, and 1981-82. The department contended that the exemption under Notification No. 105/80 did not apply to the manufacturer, a government department, due to aggregate clearances exceeding the specified limit.

Eligibility for duty exemption u/s Notification No. 105/80: The appellant argued that they met the conditions of the notification as their clearances were below Rs. 30 lacs for the relevant financial years. It was emphasized that there was no allegation of intentional evasion of duty or suppression of facts in the show cause notice, making it time-barred under the six-month limitation period.

Time limitation for issuing show cause notice: The Departmental Representative later amended the show cause notice in 1990 to invoke the provision of deliberate duty evasion. However, the Tribunal found that the original notice issued in 1985 did not contain any allegations of deliberate intention to evade duty or suppress facts. Given that the manufacturer was a government department, it was deemed unlikely that deliberate evasion would occur. Consequently, the Tribunal held the show cause notice as time-barred and set it aside, allowing the appeal.