2007 (6) TMI 134 - AT - Central Excise

Recovery of short levy Appellant furnished all the details at proper time to Dept. No suppression of facts so SCN issued for recovery is hit by time bar Impugned order is set aside

Summary

Issues:
1. Confirmation of short levy in respect of misroll.
2. Barred by time - Show cause notice issued after a lapse of 2 years.

Analysis:
1. The appeal arose from an order confirming short levy in respect of misroll, where the appellants had classified the goods and paid the duty. However, the revenue proceeded against them by issuing a show cause notice invoking a larger period for confirming duty based on alleged misdeclaration of goods. The appellants contended that the demands raised were barred by time, as they had furnished all details to the department in 1998. The Commissioner noted that the appellants admitted their mistake in classifying the product under the wrong heading. The Tribunal observed that all details were furnished on 15-1-2000 as required by the Department, and the show cause notice issued on 22-8-02 was clearly time-barred. The demand was held to be hit by the time bar, and the impugned order was set aside with the appeal allowed.

2. The Tribunal considered the timeline of events, noting that the appellants had initially furnished details on 12-2-98, with further details provided on 15-1-2000 as required by the Department. Despite this, the department failed to initiate action within the period of limitation and issued the show cause notice for recovery of short levy on 22-8-02. It was emphasized that all necessary information had been furnished, and there was no suppression of facts. Consequently, the Tribunal concluded that the demand was indeed hit by the time bar, leading to the setting aside of the impugned order and allowing the appeal with any consequential relief. The decision was pronounced and dictated in open court.