1994 (8) TMI 89 - AT - Central Excise

Summary

Issues: Stay application regarding Central Excise duty exemption under Notification No. 175/86, possession of SSI certificate, extended period show cause notice.

The judgment pertains to a stay application filed in response to an order by the Collector of Central Excise, Bombay-III dated 30-9-1993. The appellants, an SSI unit, were availing exemption under Notification No. 175/86, amended on 1-11-1987, which required possession of an SSI certificate. The appellants had been claiming the benefit under this notification and had declared their registration with the DGTD. Subsequently, the department issued a show cause notice demanding duty for a period of six months, alleging non-possession of the SSI certificate. The appellants obtained and produced the certificate, but the department was willing to consider it only from the date of issue. Meanwhile, another show cause notice was issued by the Collector for an extended period, which the appellants contested, arguing that there was no justification for the extended notice. They contended that the SSI certificate should be considered for the entire period they were within the small scale limit. The department argued that the amended notification required possession of the certificate and filing of an amended classification list, which the appellants failed to do, necessitating the extended period.

The Tribunal considered the submissions and found that the appellants had a prima facie good case. The department failed to justify the invocation of the extended period. The appellants' compliance with the production and clearance limits for SSI was not disputed. The implications of not possessing the SSI certificate earlier or filing an amended classification list were deemed arguable and to be considered during the main appeal hearing. Considering the totality of facts and circumstances, the Tribunal granted the appellants' request, waived the pre-deposit amount, and stayed its recovery during the appeal's pendency. The judgment underscores the importance of compliance with notification requirements and the need for a justifiable basis for invoking an extended period in excise duty matters.