2006 (11) TMI 217 - HC - Central Excise

Summary

Issues involved:
The issues involved in the judgment are:
1. Liability of the respondent firm to pay Central Excise duty without registration, non-payment of duty, and working without a license.
2. Whether the conduct of the respondent firm amounts to suppression of facts.
3. Invocability of the extended period of five years under Section 11A of the Central Excise Act.

Issue 1: Liability of the respondent firm for Central Excise duty:
The revenue demanded duty for steel structures fabricated by the assessee on job work, beyond the limitation period u/s 11A of the Act, due to alleged wilful suppression of facts. The assessee contended that no excisable goods were manufactured during the civil contract execution.

Issue 2: Suppression of facts by the respondent firm:
Although the manufacture of excisable goods may not have been involved in the civil contract execution, the Tribunal held that the extended limitation period could be invoked based on the respondent's conduct. The Tribunal referred to a Supreme Court case emphasizing the requirement of a positive act to establish wilful suppression.

Issue 3: Invocability of the extended limitation period:
The Tribunal noted that prior to a specific judgment, there was uncertainty regarding the dutiability of structures and parts thereof. It was observed that during the relevant period, the law was unclear on this matter, and the non-levy of duty was not due to wilful acts to evade payment.

The Tribunal concluded that the assessee did not suppress facts justifying the revenue to invoke the extended limitation period. Consequently, no substantial question of law arose for consideration, leading to the dismissal of the appeal. Additionally, the Tribunal highlighted the importance of clarity and consistency in filing appeals involving multiple cases to avoid conflicts and maintain coherence in orders.