1990 (12) TMI 221 - AT - Central Excise

Issues:
- Allegation of suppression in the show cause notice
- Invocation of extended period of limitation
- Duty amount and period involved
- Merits of the case
- Financial hardship plea
- Pre-deposit of duty amount and grant of stay

Allegation of Suppression in the Show Cause Notice:
The appeal was filed by Triveni Engineering Works Ltd. against the order passed by the Collector of Central Excise, Allahabad. The applicant argued that the show cause notice did not contain any allegation of suppression, and therefore, the extended period of limitation could not be invoked. The applicant contended that the lack of specific details in the notice supported their case on the limitation aspect. However, the respondent argued that the revenue had a strong case on merits, pointing out that the applicant had not disclosed certain contract details with sugar manufacturers, which were relevant to the duty calculation.

Invocation of Extended Period of Limitation:
The show cause notice issued by the Superintendent of Central Excise Range II, Naini, dated 1st December 1981, demanded duty amounting to Rs. 6,78,551.86 under Section 11A of the Central Excise Act, 1944. The notice mentioned various items for which duty had not been paid, totaling Rs. 84,81,898.29. Despite the absence of specific details in the notice, the Tribunal held that the mere non-mentioning of the proviso in the notice did not invalidate the proceedings. Citing legal precedents, the Tribunal emphasized that as long as there was a valid provision under which the order could be made, any technical errors in the notice did not nullify the demand for duty.

Duty Amount and Period Involved:
The duty amount in question was Rs. 1,95,690.48 for the period from 1st January 1980 to 31st December 1980. The applicant argued that they had a good case on merits, particularly concerning bought-out items on which duty had been levied. However, the Tribunal noted that the revenue prima facie had a strong case on merits, especially regarding the applicant's compliance with Notification No. 120/75 and the duty calculation based on invoice values.

Merits of the Case:
After considering the arguments from both sides and examining the show cause notice, the Tribunal concluded that the revenue had a good case on merits. The Tribunal highlighted that the show cause notice should be viewed in its entirety and not in a piecemeal manner. While financial hardship was not raised as an issue before the Tribunal, it was noted that the applicant did not establish undue hardship that warranted granting a stay on the duty payment.

Pre-Deposit of Duty Amount and Grant of Stay:
In light of the findings on the merits of the case and the absence of a plea for financial hardship, the Tribunal ordered the applicant to deposit the duty amount of Rs. 1,95,690.48 within ten weeks. Failure to comply with this order would render the appeal liable to dismissal for non-compliance with the provisions of Section 35F of the Central Excises and Salt Act, 1944.

This detailed analysis of the judgment addresses the various issues involved and the Tribunal's decision on each aspect of the case.

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