2007 (12) TMI 403 - AT - Central Excise

Summary

Issues involved: Appeal against Order-in-Appeal No. 75/2005-C.E. passed by the Commissioner of Customs & Central Excise (Appeals -II) Hyderabad regarding demand confirmation and penalty imposition u/s Notification 83/99 for job work done from small scale units.

Summary:

Issue 1: Demand confirmation and penalty imposition u/s Notification 83/99
The appeal was filed against the Order-in-Appeal confirming a demand of Rs. 9,23,793/- and imposing a penalty of Rs. 1,00,000/- for the period from 1-6-98 to 31-8-99. The appellant received job work from small scale units and returned finished goods to them. The main ground for the demand was that the suppliers did not follow the procedure required under Notification 83/99. The appellant argued that there was no wilful suppression to evade duty, as they rectified the procedure after an audit in 1999. The Tribunal found no justification for invoking the longer period, as the show cause notice was issued on 2-7-2003 for the period from 1-6-98 to 31-8-99. The appeal was allowed on the grounds of time bar due to lack of intent to evade duty.

*(Operative portion of this Order was pronounced in open court on conclusion of hearing)*