1990 (6) TMI 176 - AT - Central Excise

Issues:
1. Reference application under Section 36G(1) of the Central Excises & Salt Act, 1944.
2. Determination of question relating to the rate of central excise duty.
3. Time-barred demand for duty under Section 11A(1) of the Central Excises & Salt Act, 1944.
4. Correction of period for the demand of duty.

Analysis:

1. Reference Application under Section 36G(1) of the Central Excises & Salt Act, 1944:
The applicants filed a reference application seeking a question of law to be referred to the High Court under Section 36G(1) of the Act. The question pertained to the applicability of an exemption notification and whether the Additional Collector of Central Excise was correct in his interpretation. The Tribunal noted that the order in question related to the determination of a question regarding the rate of central excise duty. As per Section 35G(1) of the Act, a reference application may not be filed against an order that relates to the rate of duty of excise. Therefore, the Tribunal dismissed the reference application.

2. Determination of Question Relating to the Rate of Central Excise Duty:
The Tribunal upheld the Department's view that the applicants were not entitled to the benefit of the exemption notification, leading to a dispute on the central excise duty rate. The Tribunal's order was deemed to relate to the determination of a question concerning the rate of central excise duty, making it ineligible for a reference application under the Act. Consequently, the reference application was dismissed by the Tribunal.

3. Time-barred Demand for Duty under Section 11A(1) of the Central Excises & Salt Act, 1944:
In a related matter, the Tribunal had earlier held that the demand for duty beyond a specified period was time-barred. The applicants sought a correction in the period for which the demand was payable, as the original demand period did not align with the actual demand raised by the Department. The Tribunal accepted the correction requested by the applicants and modified the period for which the demand for duty should be confined. The correction was made to ensure accuracy and alignment with the actual demand raised by the Department.

4. Correction of Period for the Demand of Duty:
The applicants, through a ROM application, requested a correction in the period for which the demand for duty was payable. The Tribunal, considering the discrepancy between the original demand period and the actual demand raised by the Department, allowed the correction requested by the applicants. The Tribunal substituted the period mentioned in its earlier order to accurately reflect the period for which the demand for duty should be confined, ensuring clarity and correctness in the decision.

This judgment highlights the importance of precise interpretation of legal provisions, especially concerning the applicability of exemption notifications and the determination of central excise duty rates. It also underscores the need for accuracy in specifying the period for which a demand for duty is payable to avoid any ambiguity or discrepancies in legal proceedings.

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