2014 (1) TMI 1161 - AT - Central Excise

Demand of Duty because of suppression of facts Waiver of pre-deposit Held that - The Commissioner observed that the applicant suppressed the fact of production and clearance of products falling under different Headings of the Tariff - Prima facie, the Central Excise audit officers in the beginning did not raise any dispute and the demand appears to be barred by limitation thus, the assessee directed to deposit 50% of duty as a pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues involved:
- Demand of duty on products classification
- Grounds of limitation for hearing the stay application
- Allegation of suppression of facts by the applicant
- Commissioner's findings on the issue of mis-declaration

Demand of duty on products classification:
The judgment revolves around the demand of duty amounting to Rs.2,00,46,367/- on products classified as (i) Ramco Super Fine, (ii) Ramco Tile Fix, and (iii) Ramco Super Plaster under specific tariff headings. The applicant, engaged in the manufacture of dry mix plaster, contests this demand.

Grounds of limitation for hearing the stay application:
The consultant representing the applicant argues primarily on the grounds of limitation for the hearing of the stay application. It is contended that duty was being paid under a specific heading from the beginning, with no objections raised during audits. Reference is made to a previous Tribunal decision in their favor regarding a similar issue.

Allegation of suppression of facts by the applicant:
The Additional Commissioner asserts that there was a clear suppression of facts by the applicant, particularly related to undisclosed literature and mis-declaration of the product as dry mix plaster. The Commissioner's detailed findings support this claim of suppression.

Commissioner's findings on the issue of mis-declaration:
Upon review of the records, the Commissioner observed that the applicant had suppressed the fact of production and clearance of products falling under different tariff headings. Despite initial non-dispute by Central Excise audit officers, the demand is considered potentially time-barred. The Tribunal directs the applicant to deposit a specified amount within a given period, acknowledging a reduced duty liability for the normal period.

This judgment addresses the contentious issue of duty demand on specific products, highlighting arguments regarding limitation grounds, alleged suppression of facts, and mis-declaration by the applicant. The decision emphasizes the importance of compliance and predeposit requirements, balancing the duty liability with considerations of past audits and Tribunal precedents. The detailed findings of the Commissioner play a crucial role in determining the outcome, underscoring the significance of accurate classification and transparent disclosure in excise matters.