2008 (12) TMI 220 - HC - Central Excise

Summary

Issues involved: Interpretation of Notification No. 108/95-C.E., delay in issuing show cause notice, suppression of facts by the petitioner.

Interpretation of Notification No. 108/95-C.E.: The Court considered whether the petitioner was eligible for benefits under Notification No. 108/95-C.E. dated 28-08-95, which required the project to be financed by an International Organization. It was noted that the Japan Bank did not qualify as an International Organization as per the notification. The Assistant Commissioner informed the petitioner that they could avail the benefits if the project was funded by any other International Organization. The permission granted was subject to the conditions of the notification.

Delay in issuing show cause notice: The petitioner raised a point regarding the show cause notice being issued after 2 years. However, the Commissioner (Appeal -I) found that the petitioner had misled the department by claiming the goods were supplied to a project funded by an International Organization. The Court held that in cases of suppression, u/s 11A, the authority could issue a show cause notice even 5 years from seizure, rendering the limitation argument invalid.

Suppression of facts by the petitioner: The Court observed that the petitioner's attempt to mislead the department about the funding source of the project led to the dismissal of the limitation argument. The Tribunal had already examined the issue in detail, and the Court found no grounds to interfere with the Tribunal's decision. It was concluded that there was no illegality or irregularity in the Tribunal's order, and the application was dismissed.

Separate Judgement: No separate judgment was delivered by the judges in this case.