2018 (3) TMI 1910 - AT - Central Excise

SSI Exemption - use of brand name or the goods were unbranded - N/N. 175/86 CE, 1/93 CE dated 28.02.93 and 16/97 CE dated 01.04.1997 - Extended period of limitation - HELD THAT - Admittedly, in this case, the period involved is 01.04.1994 till 17.10.1997 whereas the show cause notice has been issued on 22.03.1999. In that circumstances, the show cause notice has been issued by invoking extended period of limitation. The extended period of limitation is not invokable in the facts and circumstances of this case. As there were divergent views during the relevant period on the issue of benefit of SSI exemption notification using brand name of other person for different goods. In that circumstance, the whole of the demand is barred by limitation. Appeal is allowed on limitation.

Summary

Issues: Interpretation of SSI exemption notification, invocation of extended period of limitation, brand name usage for goods, validity of show cause notice

In this case, the appellant, engaged in manufacturing Diesel Engine parts, availed SSI exemption under specific notifications. The brand name used by the appellant was registered for a different item under a different entity. A Show Cause Notice was issued to deny the SSI exemption claimed. After multiple adjudications, the Hon'ble Apex Court ruled against the appellant but remanded the case to the Tribunal on the question of limitation. The Tribunal, in the remand proceedings, invoked the extended period of limitation. However, considering the conflicting views on the interpretation of the SSI exemption notification during the relevant period, the Tribunal held that the extended period of limitation was not applicable in this case. Consequently, the Tribunal found the entire demand to be barred by limitation. The Tribunal allowed the appeal filed by the appellant on the grounds of limitation and dismissed the appeal filed by the Revenue, concluding that the extended period of limitation was not invokable in the circumstances of the case.

The main issue in this judgment was the interpretation of the SSI exemption notification and the invocation of the extended period of limitation. Initially, the proceedings against the appellant were dropped, but subsequent judicial pronouncements, including a ruling by the Hon'ble Apex Court, went against the appellant. The Tribunal, however, considered the conflicting views on the interpretation of the notification during the relevant period and held that the extended period of limitation was not applicable. This decision was based on the circumstances surrounding the brand name usage and the differing opinions on the benefit of SSI exemption notification. As a result, the Tribunal found the entire demand to be time-barred.

The case also involved the usage of a brand name by the appellant for goods manufactured, which was registered for a different item under a different entity. This usage of the brand name led to the issuance of a Show Cause Notice to deny the SSI exemption claimed by the appellant. The subsequent legal proceedings focused on whether the appellant was entitled to the benefit of the SSI exemption notification given the brand name usage and the registration details. The Tribunal's decision to not invoke the extended period of limitation was crucial in determining the outcome of the case, ultimately leading to the dismissal of the Revenue's appeal and the allowance of the appellant's appeal on the grounds of limitation.