1992 (6) TMI 126 - AT - Central Excise

Summary

Issues:
1. Whether the exemption order issued by the Government of India under Section 5A(2) of the Central Excises & Salt Act, 1944, covers the project undertaken by the petitioner on a job work basis, including the fabrication that had already taken place.
2. Whether the show cause notice issued to the petitioner is barred by limitation under Section 11A of the Act.

Analysis:
1. The petitioner filed two petitions seeking waiver of pre-deposit of duty and penalty under impugned orders related to the fabrication of cement-coated steel pipes for a water supply project. The petitioner argued that various governmental bodies recommended exemption from excise duty for the project in public interest, culminating in Government Order No. 6/91 issued under Section 5A(2) of the Act. The petitioner contended that the exemption order should cover the entire project, including past fabrication. The learned counsel emphasized the exceptional nature of the order and challenged the adjudicating authority's interpretation of its prospective application. The Tribunal examined the order and surrounding correspondence, leaning towards granting the waiver based on prima facie grounds due to the order's broad scope and the limitation bar under Section 11A.

2. The Respondent, through the learned SDR, argued that the exemption order did not expressly cover goods already manufactured before its issuance. However, the Tribunal noted that the order specifically exempted all excisable goods fabricated for the project, without limiting it to future production. The Tribunal also considered the purpose of the project and the public interest involved, concluding that the exemption order likely encompassed the petitioner's project, including prior fabrication. The Tribunal found merit in the petitioner's argument regarding the limitation bar under Section 11A, further supporting the grant of a waiver of pre-deposit and stay of recovery pending appeal.

3. Given the Special Bench nature of the appeals, the Tribunal directed the transmission of papers to CEGAT, New Delhi, for disposal. The comprehensive analysis of the exemption order, the circumstances surrounding the project, and the statutory provisions led to the Tribunal's decision to grant the waiver and stay, pending the final resolution of the appeals. The judgment highlighted the exceptional nature of the exemption order and its likely coverage of the petitioner's project, emphasizing the public interest aspect and the statutory limitations on the show cause notice.