1997 (9) TMI 120 - HC - Central Excise

Summary

Issues:
Classification of printed cartons under Central Excise Tariff, applicability of exemption notifications, limitation period for show cause notice, review of Full Bench decision, condonation of delay.

Classification of Printed Cartons:
The petitioner, a manufacturer of printed cartons, sought exemption from excise duty under Tariff Item No. 68, claiming that printed cartons were products of the printing industry. The Appellate Collector initially allowed the exemption, but the Government issued a show cause notice challenging this classification. The Full Bench, guided by a Supreme Court decision, concluded that printed cartons were not products of the printing industry and thus not entitled to the claimed exemption.

Limitation Period for Show Cause Notice:
The Full Bench addressed the issue of limitation raised by the petitioner regarding the show cause notice issued beyond the prescribed six-month period from the Appellate Collector's order. Citing relevant precedents, including a Supreme Court decision, the Court held the show cause notice and the consequential order as illegal due to being issued beyond the limitation period.

Review of Full Bench Decision and Condonation of Delay:
The petitioner filed a review application challenging the Full Bench decision, arguing that the show cause notice had been disposed of by the Central Government before the amendment to the Central Excises and Salt Act came into force. The Court dismissed the review application initially due to the petitioner's failure to challenge the Central Government's order. However, upon discovering that the writ petition had been amended in 1982, the Court acknowledged the petitioner's negligence but allowed the review application on payment of costs.

Condonation of Delay and Final Decision:
The Court granted the petitioner's request for condonation of delay in filing the review application and recalled the order rejecting the review application. It also quashed the show cause notice and the consequential order dated 14th September, 1981, based on the finding that the show cause notice was issued beyond the limitation period. The Court directed the petitioner to deposit costs of Rs. 50,000 and disposed of all related applications accordingly.