1986 (4) TMI 176 - AT - Central Excise

Summary

Issues:
- Appeal against order demanding duty under Section 47 of the Finance Act, 1982
- Applicability of Section 47(2)(d) of the Finance Act, 1982
- Limitation under Section 11(A) of the Central Excises & Salt Act, 1944

Analysis:

1. The appeal was against an order demanding duty from the appellant under Section 47 of the Finance Act, 1982, related to clearances of caustic soda, caustic potash, acids, and fertilizers. The appellant availed themselves of an exemption under Notification No. 198/76 CE for certain products. The Department alleged that the appellant paid duty less by Rs. 89,535.40 due to the retrospective effect of the Finance Act, 1982.

2. The appellant argued that the demand for differential duty was time-barred under Section 11(A) of the Central Excises & Salt Act, 1944. They contended that Section 47(2)(d) of the Finance Act, 1982 did not override Section 11(A) and that no show cause notice was issued within the limitation period. The appellant also relied on various court rulings to support their argument.

3. The Department argued that assessments made under the retrospective amendment were valid, and recovery of duty followed as a consequence. They asserted that the assessable value should be based on the actual effective rate of duty paid. The Department contended that the limitation under Section 11(A) was not relevant in interpreting the scope of Section 47(2) of the Finance Act, 1982.

4. The Tribunal examined Section 47(2) of the Finance Act, 1982, which deemed actions taken under the Central Excises Act during a specified period as valid. The Tribunal considered whether the differential duty demanded was subject to the limitation period under Section 11(A) of the Act. They referenced court rulings, including a Delhi High Court decision, to support their interpretation that Section 47 did not override the limitation period.

5. The Tribunal concluded that the demand for differential duty was indeed barred by limitation under Section 11(A) of the Act. They found that Section 47 of the Finance Act, 1982 did not impact the limitation period and cited various rulings to support their decision. As the limitation issue favored the appellant, the impugned order was set aside, and the appeal was allowed. The Tribunal did not delve into other arguments raised by the appellant due to the limitation ruling.