1998 (3) TMI 224 - AT - Central Excise

Issues:
1. Eligibility for exemption under Notification No. 208/83.
2. Invocation of the longer period for demand duty.
3. Allegation of wilful suppression by the applicants.
4. Interpretation of purchase from open market.
5. Scope of rectification application.
6. Whether the inputs received under nil rate of duty gate passes are deemed non-duty paid.
7. Degree of central excise control over non-licensed units.

Eligibility for Exemption under Notification No. 208/83:
The Tribunal's Final Order found the applicants ineligible for exemption under Notification No. 208/83 as their inputs were received from manufacturers at a Nil rate of duty. The Tribunal concluded that the applicants did not meet the conditions for exemption as the duty had not been paid on the inputs.

Invocation of the Longer Period for Demand Duty:
The Tribunal held that the charge of non-disclosure of full particulars in the declaration by the applicants was established, justifying the invocation of the longer period for demanding duty. The show cause notice issued was deemed valid within the extended period.

Allegation of Wilful Suppression by the Applicants:
The applicants argued that the show cause notice issued was barred by limitation as the department had knowledge about the receipt of inputs by the applicants since 18-5-1988. They contended that there was no wilful suppression on their part as they had provided full particulars as requested between 1985-88.

Interpretation of Purchase from Open Market:
The applicants relied on a Supreme Court decision to argue that purchase from the open market should be considered the same as purchase from a manufacturer. They claimed that there was no misdeclaration on their part regarding the source of inputs.

Scope of Rectification Application:
The Department argued that the rectification application should not permit the applicants to re-argue the appeal itself. They contended that the scope of rectification is limited and does not allow for new submissions. The Department emphasized that the inputs received under nil rate of duty gate passes were clearly non-duty paid.

Degree of Central Excise Control over Non-Licensed Units:
The Department highlighted that the control over non-licensed units, like the applicants, which only needed to file a declaration, was not as rigorous as for licensed units. They argued that the receipt of inputs at nil duty gate passes amounted to suppression of facts with the intention to evade duty.

Conclusion:
The Tribunal rejected the application for rectification of mistake, stating that there was no apparent error on record that warranted rectification. They emphasized that the grounds raised in the rectification application were new and had not been presented during the original appeal. The Tribunal held that the detailed arguments and case laws cited in the rectification application were not considered during the original appeal, thus dismissing the rectification request.

← Previous Next →