2007 (11) TMI 658 - AT - Central Excise

Summary

Issues involved: Determination of duty liability u/s Notification No. 64/95-C.E., availability of exemption, applicability of limitation period, imposition of penalties.

Summary:
The Appellate Tribunal CESTAT AHMEDABAD disposed of a group of cases involving manufacturers of excisable goods supplying to shipbuilders without duty payment under Notification No. 64/95-C.E. The Revenue contended that the goods were not for consumption on board a vessel, challenging the exemption claimed. The issue of exemption availability was settled against the appellants based on precedent. The demand was challenged on the ground of limitation, citing previous Tribunal decisions where demands were held time-barred. The Tribunal referred to cases where demands were considered time-barred due to bona fide belief or certificate from Naval authorities. The demands were held to be barred by limitation, and penalties were set aside. The duty liability for a specific period was quantified by adjusting the amount already paid by the appellants. Penalties imposed were also set aside due to the demands being time-barred.