1990 (3) TMI 186 - AT - Central Excise

Summary

Issues:
Classification under Notification No. 71/78, Clubbing of clearances, Time-barred adjudication orders, Validity of Collector's powers under Sec. 35E(2).

Classification under Notification No. 71/78:
The appellant, a Sodium Silicate manufacturer, claimed exemption under Notification No. 71/78 for the year 1979-80 and 1980-81. The appellant cleared goods on behalf of another entity within the exemption limit. The Department issued show cause notices claiming differential duty, contending that clearances should be clubbed, exceeding the exemption limit. The Ld. Collector (Appeals) allowed the Department's appeal. The appellant argued that clearances for the other entity should not be clubbed, citing Tribunal precedents. However, the Tribunal held that clearances must be treated as the manufacturer's, rejecting the appellant's contention.

Time-barred adjudication orders:
The appellant contended that the orders were time-barred under Section 35E(3) due to delay in issuing the Collector's order. The Tribunal referred to a precedent holding that the amendment reducing the limitation period was not retrospective, thus rejecting the appellant's limitation argument.

Validity of Collector's powers under Sec. 35E(2):
The appellant argued that the Collector's powers under Sec. 35E(2) were invalid as the orders were passed before Chapter VIA was introduced. The Tribunal disagreed, stating that the Collector's powers under the repealed Section 35A were no longer applicable, and the new Section 35E did not have a saving clause. The Tribunal upheld the Collector's exercise of powers under Sec. 35E(2), dismissing the appellant's argument of the appeals being void.

In conclusion, the Tribunal dismissed the appeals, upholding the Department's claim for differential duty and rejecting the appellant's arguments regarding classification under Notification No. 71/78, time-barred adjudication orders, and the validity of the Collector's powers under Sec. 35E(2).