2009 (5) TMI 758 - AT - Central Excise

Summary

Issues involved:
The issues involved in this case are the invocation of extended period of limitation for demanding differential duty, submission of costing data by the appellant, and the applicability of the Tribunal's decision in a similar case.

Summary:

Invocation of Extended Period of Limitation:
The case involved the appellant, a manufacturer of Cable Jointing Kits (CJKs), who also produced an excisable intermediate product named Heat Shrinkable Sleeves (HSS). The Department issued a show cause notice demanding duty, interest, and penalties, alleging that the appellant had not submitted relevant costing information to evade duty payment. The Commissioner (Appeals) upheld the order, citing delayed submission of costing data by the appellant. However, the Tribunal found that the Revenue's request for clarification on costing data was responded to promptly by the appellant, and the show cause notice issued was time-barred.

Submission of Costing Data:
The appellant had informed the Department about the costing data for the HSSs, certified by a Cost Accountant, in a letter dated 10-12-2002. Despite some correspondences seeking clarification, the appellant responded on 28-6-2005. The Commissioner (Appeals) held the appellant responsible for delayed submission, but the Tribunal disagreed, stating that the Revenue could have confirmed the duty based on the data provided in 2002.

Applicability of Tribunal's Decision:
The appellant's counsel argued that a similar issue involving their sister concern had been decided in their favor by the Tribunal. The Tribunal agreed, citing the previous decision where the show cause notice was deemed time-barred due to the timely submission of data. Consequently, the impugned orders were set aside, and both appeals were allowed.

This judgment highlights the importance of timely submission of relevant data in excise duty cases and the implications of invoking an extended period of limitation for demanding duty.