2002 (4) TMI 102 - AT - Central Excise

Summary

Issues:
1. Whether the use of power in lifting water and pouring it into bleaching tanks constitutes the process of bleaching fabrics with the aid of power.
2. Whether the demand for Central Excise duty is time-barred.

Analysis:

Issue 1:
The appeal challenges the Commissioner's order confirming a Central Excise duty demand, a redemption fine, and a penalty. The appellant argued that using a 2 HP motor for lifting water did not constitute using power in the bleaching process. They relied on a Tribunal decision exempting processes not using power. The Revenue contended that using an electric stirrer for dye mixing implied power usage. The Tribunal held that incidental power use did not disqualify the exemption unless power was used in the main process. The Supreme Court's decision in CCE v. Rajasthan State Chemical Works was cited, emphasizing power use in manufacturing. The Tribunal rejected the appellant's attempt to distinguish the Supreme Court's ruling, concluding that lifting water with power was integral to the process, denying the exemption.

Issue 2:
Regarding the limitation question, the Commissioner found the appellant suppressed facts to evade duty, a finding upheld by the Tribunal. The appellant failed to challenge this determination effectively. Therefore, the Tribunal dismissed the appeal, upholding the duty demand and penalties.