9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (7) TMI 757 - AT - Central Excise
Issues:
Time bar for duty demand raised in show cause notice dated 22-3-2002 for clearances made in 1998-99. Analysis: The Tribunal had remanded the matter for de novo regarding the clearance of modvated inputs, where a duty demand of Rs. 2,86,168/- was raised by a show cause notice dated 22-3-2002 for clearances made in 1998-99. The appellant argued that the show cause notice was time-barred as they had informed the details of clearances in their letter dated 31-5-1999, and the department did not take any steps to investigate within six months. The appellant relied on various judgments, including Shree Renuka Sugars Ltd. v. CCE, Bangalore, to support their contention that delays in issuing show cause notices render the demands time-barred. The appellant contended that since the department was fully aware of the facts of the case through their declarations in the letter dated 31-5-1999, issuing the show cause notice on 22-3-2002, after six months, would be time-barred. On the other hand, the JDR argued that later investigations revealed suppression of facts, justifying the invokement of a larger period. He distinguished the judgments cited by the appellant. The Tribunal, without delving into the case's merits, focused on the plea of time bar. It noted that the appellant had informed the department about the clearances and duty payments in their letter dated 31-5-1999. The department failed to investigate promptly, leading to an inordinate delay in issuing the show cause notice on 22-3-2002. The Tribunal found that the demands were hit by time bar due to the department's failure to act on the details provided by the appellant in a timely manner. The Tribunal emphasized the appellant's bonafide actions in depositing the duty and providing details of clearances in their letter, stating that there was no suppression of facts warranting the invokement of a larger period. The Tribunal set aside the demands as time-barred, citing supporting judgments and granting consequential relief to the appellant.
|
