1996 (11) TMI 191 - AT - Central Excise

Summary

Issues involved: Jurisdiction of the Tribunal to grant stay under Section 35F, Compliance with Section 11A and 11D of the Central Excise Act, Time limit for demanding duty, Interpretation of Collector's order, Applicability of Section 11D in context of Section 11A.

Jurisdiction of the Tribunal: The department argued that the Tribunal cannot grant a stay under Section 35F of the Central Excise Act when duty is collected and retained by the assessee. The Tribunal found that the Collector's order was appealable and the Tribunal had jurisdiction to entertain the appeal and stay petition.

Compliance with Section 11A and 11D: The Collector advised the appellant to deposit the duty under Section 11D of the Central Excise Act. The Tribunal noted that the show cause notice was issued under Section 11A but was withdrawn by the Collector. The demand under Section 11D was considered beyond the time limit prescribed under Section 11A.

Time limit for demanding duty: The Tribunal found that the demand made by the Collector under Section 11D exceeded the 6-month time limit under Section 11A, rendering it time-barred. The allegation of suppression for invoking the extended period under Section 11A was not sustained.

Interpretation of Collector's order: The Collector's order was found to be appealable, directing the appellant to file an appeal before the Tribunal. The Tribunal held that the demand under Section 11D must be construed in the context of Section 11A, which exceeded the time limit and was therefore time-barred.

Applicability of Section 11D in context of Section 11A: The Tribunal allowed the appeal, concluding that the demand under Section 11D, advised by the Collector, must be considered in conjunction with Section 11A. The demand exceeding the 6-month time limit under Section 11A was deemed time-barred, and the extended period could not be invoked in this case.