1987 (8) TMI 201 - AT - Central Excise

Summary

Issues:
1. Barred by time - Show cause notice issued more than 6 months after disclosure of facts.
2. Wilful suppression of facts - Department's entitlement to a 5-year period for enforcement.
3. Exclusion of goods exported from duty calculation.
4. Correct quantification of excess clearances liable for duty.

Analysis:

1. The case involved a show cause notice issued to M/s. Vishwa Industrial Works for manufacturing and clearing goods without observing Central Excise formalities. The notice proposed duty recovery and penalty for the period from 1-4-1978 to 10-4-1979. The Additional Collector confirmed the demand and imposed a penalty, leading to the appeal.

2. The appellants argued that the show cause notice was time-barred as all facts were disclosed on 4-4-1979. The Department contended that wilful suppression of facts allowed a 5-year enforcement period. The Tribunal found that until 4-4-1979, the appellants had suppressed facts, justifying the 5-year enforcement period for duty recovery.

3. Regarding duty calculation, the appellants claimed that goods exported should be deducted before applying statutory exemptions. However, the Tribunal noted that the goods were cleared for home consumption, not direct export by the appellants. The claim for exclusion of exported goods from duty calculation was rejected.

4. The Tribunal upheld the Additional Collector's quantification of excess clearances liable for duty, except for modifying the demand to exclude clearances between 4-4-1979 to 10-4-1979. Consequently, the appeal was dismissed, with the modification in duty demand being the only alteration to the original order.