1997 (12) TMI 395 - AT - Central Excise

Summary

Issues:
1. Whether the Tribunal erred in concluding goods were clandestinely removed without examining material facts and rejecting evidence.
2. Whether the Tribunal failed to address the claim for small-scale exemption due to lack of findings on branded goods.
3. Whether the show cause notice was time-barred under Section 11A(1) of the Central Excise Act.

Analysis:
1. The appellant argued that there was sufficient documentary evidence supporting their position, and the Tribunal's finding was improper. They contended that without a specific finding that the goods were branded, they should benefit from a small-scale exemption. The Tribunal rejected these arguments, stating they had already considered the evidence, and no legal issue necessitated a High Court reference.

2. The respondent countered that the issues raised were factual and not previously raised, citing precedents. They argued that the small-scale exemption claim required factual determination, which could not be introduced at a late stage. The Tribunal concurred, emphasizing that no legal point necessitated a reference to the High Court.

3. The appellant raised a limitation issue, citing a Tribunal decision on the time limit for issuing show cause notices. The respondent objected, stating the issue was not raised earlier. However, the Tribunal found that the limitation aspect was raised before and during the appeal process. Conflicting Tribunal decisions on the relevance of the Department's knowledge to the limitation period led to a conclusion that a legal question arose, warranting a High Court reference under Section 35G of the Central Excise Act, 1944.

4. The Tribunal noted conflicting views on the limitation issue, with some decisions emphasizing the relevance of the Department's knowledge to the limitation period and others focusing on the date of alleged removal. Due to this legal uncertainty, the Tribunal directed both parties to prepare a statement of facts for a High Court reference to clarify the legal position on the limitation issue.