1990 (1) TMI 222 - AT - Central Excise

Summary

Issues:
1. Time-limit for raising demand on finalization of RT.12 returns.
2. Validity of classification lists for assessment.
3. Choice between MODVAT concession and exemption under Notification 175/86.

Issue 1: Time-limit for raising demand on finalization of RT.12 returns
The appeal was against the order of the Collector of Central Excise (Appeals), Madras, regarding the time-limit for raising a demand on finalization of RT.12 returns. The Superintendent raised a demand after 6 months of duty payment, which was contested by the Department. The Department argued that the demand was raised within 6 months based on an approved Classification List. The Department contended that the show cause notice issued beyond 6 months was unnecessary under the Central Excise assessment procedure. The respondent had filed two classification lists, and the Department assessed based on the first list, which was approved. The respondent's advocate did not contest the time bar issue, focusing on the classification lists' approval and subsequent actions.

Issue 2: Validity of classification lists for assessment
The key consideration was which of the two classification lists filed by the respondent should be considered operative for assessment purposes. The Department argued that since the approval was granted for availing the MODVAT credit under the first list, the respondent had to make clearances based on that list. However, the Tribunal disagreed, stating that the choice between the concessions offered under the two lists should be left to the assessee based on what is more beneficial to them. The Department's approval of the second classification list implied the respondent could avail the benefit of Notification 175/86. As long as the duty was paid correctly under the chosen classification, the respondent was not bound to opt for a less beneficial option.

Issue 3: Choice between MODVAT concession and exemption under Notification 175/86
The respondent initially sought approval for MODVAT concession but later filed a second classification list to avail the exemption under Notification 175/86, which was more beneficial after an increase in the exemption limit. The Tribunal emphasized that the assessee has the right to choose the more advantageous option between the concessions available to them. As long as the duty was paid correctly under the chosen classification, the respondent was entitled to opt for the more beneficial exemption under Notification 175/86. The Tribunal found no merit in the appeal and dismissed it based on the respondent's valid choice of classification list for assessment and duty payment.