2009 (2) TMI 169 - AT - Central Excise

SSI Units Wrong availment of exemption - only two units declared out of three units department contended that - the respondent had obligation to declare the existence of all the three units and their clearances so that the Department can determine the eligibility otherwise of the exemption. In this case the respondent has not declared existence of three units to the concerned Central Excise authorities and suppressed the existence of one or more units held that - no investigation by the Central Excise authorities have been made or even if made no evidence to substantiate the allegation of deliberate suppression of relevant facts has been relied upon there was no deliberate attempt on the part of the respondent in not revealing the fact that Thane unit was not availing exemption meant for small scale unit though the said fact may be relevant to determine the eligibility of exemption for the present unit demand beyond normal period of limitation not maintainable.

Summary

The Appellate Tribunal CESTAT, New Delhi, consisting of Members M. Veeraiyan and P.K. Das, heard two appeals by the Department against orders from the Commissioner (Appeals) that set aside a duty demand of Rs. 11,12,116 from a company and penalties imposed on the company and its Factory Manager. The respondent company, with manufacturing units in Thane, Burhanpur, and Pithampur, was alleged to have incorrectly declared the existence and clearances of these units. The Department argued that the respondent had an obligation to declare all units to determine exemption eligibility, while the respondent claimed they were under the mistaken impression that each unit could separately avail exemption. The Commissioner (Appeals) found the demand time-barred, which the Tribunal upheld, stating that there was no evidence of deliberate suppression to evade duty payment. Therefore, the appeals by the Department were rejected. The order was dictated and pronounced in open court.