1990 (6) TMI 137 - AT - Central Excise

Summary

Issues:
1. Jurisdiction of Assistant Collector to review classification list.
2. Timeliness of duty demand.
3. Validity of show cause notice for duty demand.

Jurisdiction of Assistant Collector to review classification list:
The case involved a dispute where the Assistant Collector reclassified certain items under a different tariff item after the initial approval of classification under a different category. The Collector (Appeals) set aside the order-in-original, stating that the Assistant Collector lacked jurisdiction to review the classification list once approved. The appellant contended that the Assistant Collector had the authority to review the classification list under Section 11A. The appellant cited various authorities to support this claim. The Tribunal agreed with the appellant, stating that the Assistant Collector could review the classification list under Section 11A for recovering duty short-levied or not paid. The matter was remanded to the Collector (Appeals) for reconsideration on the reclassification issue.

Timeliness of duty demand:
The Assistant Collector demanded duty for clearances made six months prior to the initial show cause notice date. The appellant argued that the demand was beyond the time limit specified in Section 11A. The Tribunal upheld this argument, stating that the show cause notice did not ask the respondents to show cause against the duty demand for the specified period. Therefore, the demand of duty was set aside, relying on a Supreme Court judgment.

Validity of show cause notice for duty demand:
The appellant contended that the show cause notice did not explicitly demand duty from the respondents, but the mention of reclassification implied duty demand. The appellant argued that the demand was valid even if not quantified. The Tribunal disagreed, emphasizing that the notice did not specifically address duty demand for the relevant period. The demand of duty was deemed invalid, and the order-in-original was set aside.

In conclusion, the Tribunal remanded the matter to the Collector (Appeals) for reevaluation on the reclassification issue and set aside the demand of duty due to the lack of specificity in the show cause notice. Cross-objections were dismissed as the respondents had already received complete relief.