9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (8) TMI 728 - HC - Central Excise
Issues involved:
The judgment addresses the question of law regarding the time bar on a demand issued by the Appellant under Section 11A(1) of the Central Excise Act, based on the alleged suppression of material facts by the Respondents. Issue 1: Alleged Suppression of Material Facts The Revenue issued a show cause notice to the Respondents, alleging that they had removed branded goods without paying Central Excise duty, thereby contravening the provisions of the Central Excise Rules. The contention was that the Respondents wilfully suppressed the fact of manufacture and removal of goods with intent to evade payment of duty, invoking the proviso to Section 11A(1) of the Central Excise Act, 1944. Issue 2: Eligibility for SSI Benefit Respondent No.1 claimed exemption from Central Excise duty for goods cleared under 9 consignments, stating that the goods bore brand names eligible for SSI benefit and that the factory was located in a Gram Panchayat area. The Commissioner of Central Excise dismissed the appeal, holding that the benefit of the Notification was not admissible if the brand name of another person was used on the product. Issue 3: Limitation on Issuing Show Cause Notice The Customs and Excise Appellate Tribunal held that the show cause notice could not have been issued on the ground of limitation, as the Respondents had a strong case of bonafide belief. The Tribunal referred to a Supreme Court judgment and set aside the orders of the lower authorities. Conclusion: The High Court found that the view taken by the Appellate Tribunal was not contrary to the provisions of the Act. It was noted that the law was not clear on the issue, and unless the requirements of the proviso to Section 11A were satisfied, the penalty could not be imposed. The Court emphasized that the predicates for applying the proviso were not met in this case, as the law was unclear at the time of the alleged violations. Therefore, the Court dismissed the appeal, finding no merit in challenging the Tribunal's decision.
|
