1994 (10) TMI 135 - AT - Central Excise

Issues:
1. Validity of upholding the order based on a corrigendum curing a show cause notice without jurisdiction.
2. Validation of proceedings without jurisdiction through the grant of personal hearing and adherence to principles of natural justice.
3. Department's authority to rectify statutory document loopholes in a show cause notice.
4. Upholding an order encroaching upon another adjudicating authority's powers when the matter was sub judice.
5. Validity of invoking extended period of limitation for duty evasion known to the Department.
6. Requirement for filing classification list of rejected pipes.
7. Upholding clearance of standard goods as rejected goods without corroborative evidence.
8. Justification of invoking extended period in the present case without discussion or following submitted case laws.

Analysis:
1. The appellants challenged the Tribunal's decision upholding the order based on a corrigendum curing a show cause notice without jurisdiction. The Tribunal invoked the extended period for duty demand under Section 11A of the Central Excises and Salt Act, 1944, due to alleged misdeclaration of prices by showing standard pipes as rejected goods. The appellants argued that the corrigendum issued by an Additional Collector did not cure the invalidity of the show cause notice, as it was initially issued by a Deputy Collector. They contended that the classification list need not specify every variety of pipes, as they are classifiable under the same tariff item regardless of being standard or sub-standard. The Tribunal's findings on suppression of value were disputed by the appellants.

2. The issue of validating proceedings without jurisdiction through the grant of personal hearing and adherence to principles of natural justice was raised. The appellants argued that the Tribunal erred in relying on the corrigendum and not discussing specific case laws cited by them. They contended that the Tribunal's findings on suppression of value were based on factual evidence and not a question of law. The Department argued that the corrigendum issued by the competent officer was sufficient to cure any infirmity in the proceedings.

3. The Department's authority to rectify statutory document loopholes in a show cause notice was questioned. The Tribunal held that the Department could rectify errors in the show cause notice through a corrigendum and that the principles of natural justice were complied with post-issuance of the corrigendum. The appellants argued that the cases cited by them were not considered in the order, but the Tribunal found them distinguishable.

4. The issue of upholding an order encroaching upon another adjudicating authority's powers when the matter was sub judice was raised. The Tribunal's decision to uphold the extended period for duty demand based on the corrigendum was challenged by the appellants. The Tribunal found that the principles of natural justice were followed post-issuance of the corrigendum.

5. The validity of invoking the extended period of limitation for duty evasion known to the Department was contested. The appellants argued that the Department was aware of the duty evasion since the copies of gate passes for rejected pipes were submitted along with monthly returns. The Tribunal based its findings on the non-declaration of sub-standard pipes in the classification list and the statement by the company's engineer that no rejected goods were sold.

6. The requirement for filing a classification list of rejected pipes was disputed by the appellants. They argued that the classification list need not specify every variety of pipes, as they are classifiable under the same tariff item regardless of being standard or sub-standard. The Tribunal's finding on suppression of value was based on factual evidence and not a question of law.

7. The issue of upholding clearance of standard goods as rejected goods without corroborative evidence was raised. The Tribunal found that the suppression of value was established not only by the non-declaration of sub-standard pipes in the classification list but also by the statement of the company's engineer that no rejected pipes were sold. The Tribunal concluded that this was a question of fact and not a question of law.

8. The justification of invoking the extended period in the present case without discussion or following submitted case laws was contested. The appellants argued that the Tribunal did not discuss the submitted case laws on the extended period of limitation. The Tribunal found that the issues raised did not merit a reference to the High Court as they were based on factual findings and not questions of law.

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