1993 (8) TMI 204 - AT - Central Excise

Issues Involved:
1. Admissibility of additional evidence.
2. Ground of limitation for the appeals.
3. Alleged suppression of facts by the appellants.
4. Eligibility for exemption under Notification No. 175/86.

Detailed Analysis:

1. Admissibility of Additional Evidence:
The appellants filed miscellaneous applications to introduce certain documents that were not previously available. These documents were part of the lower authority's record and were crucial to the appellants' claim that the demand raised would be hit by limitation. The documents included letters from the Superintendent of Central Excise and enclosures submitted by the petitioner. These documents were admitted as additional evidence by the tribunal.

2. Ground of Limitation for the Appeals:
The appeals were heard on the ground of limitation with the consent of both parties. The appellants argued that the Department was aware of the use of the brand name "Asoka" by both M/s. Asoka Wafers and M/s. Asoka Biscuits. They contended that they had provided all required information and that both units were located close to each other under the same jurisdiction. The appellants argued that the authorities were aware of the brand name usage and that any delay in action was due to the authorities' own doubts about whether wafers and biscuits were the same product.

3. Alleged Suppression of Facts by the Appellants:
The Department alleged that the appellants had suppressed the fact that a sister concern was manufacturing biscuits with the "Asoka" brand name. The appellants countered that they had made all necessary declarations and that the proximity of the two units should have made the authorities aware of the brand name usage. The tribunal observed that the proceedings began with a show cause notice dated 25-11-1991, which alleged that the appellants were dummy units of M/s. Asoka Biscuits and were using its brand name. However, the lower authority found that the two units were independent entities.

The tribunal noted that the lower authority did not find any portion of the appellants' declaration to be wrong. The lower authority's grievance was that the appellants did not disclose that M/s. Asoka Biscuits also used the "Asoka" brand name, leading to a demand for duty invoking a longer period of limitation under para 7 of Notification No. 175/86. The tribunal found that the authorities themselves were not sure whether wafers and biscuits were the same product and only took action after concluding that they were.

4. Eligibility for Exemption under Notification No. 175/86:
The appellants argued that they were entitled to the benefit of Notification No. 175/86, which provides exemptions under certain conditions. The lower authority had ruled that the appellants were not eligible for this exemption because they used the brand name of another entity, M/s. Asoka Biscuits. The tribunal observed that the authorities were aware of the brand name usage by both units and had delayed action due to their own uncertainty about the products. The tribunal concluded that the charge of suppression was not maintainable and that no duty could be demanded beyond six months.

Conclusion:
The tribunal set aside the order of the lower authority, holding that the demand was not maintainable in law due to the bar of limitation. The authorities were aware of the brand name usage and had delayed action due to their own doubts, thereby negating the charge of suppression against the appellants.

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