1998 (2) TMI 285 - AT - Central Excise

Summary

Issues:
1. Central Excise duty evasion and penalty imposition.
2. Classification of ingot moulds under Tariff Headings.
3. Valuation of ingot moulds for duty calculation.
4. Time limitation for issuing show cause notice.

Central Excise Duty Evasion and Penalty Imposition:
The case involved an appellant who was accused of manufacturing ingot moulds without paying Central Excise duty, leading to evasion of duty amounting to Rs. 11,49,683.47. The Collector confirmed a differential duty of Rs. 5,99,017.00 on certain ingot moulds cleared during specific periods. However, no penalty was imposed due to the appellant being a public undertaking and having paid duty suo moto at a specific rate.

Classification of Ingot Moulds:
The appellant argued that the ingot moulds were mistakenly classified under Tariff Heading 8454.00 instead of 7203.10/7204.10 as scrap. They contended that the moulds were defective and sold at lower values, indicating they were scrap. The lack of evidence from the appellant to support this claim led the Tribunal to uphold the classification under Heading 8454.00.

Valuation of Ingot Moulds:
Regarding the valuation of ingot moulds for duty calculation, the appellant claimed that the duty demand was based on a higher value than the actual auction price. However, the Tribunal noted that the appellant failed to provide evidence of the realized price, and the duty was rightly demanded based on the assessable value of the goods.

Time Limitation for Show Cause Notice:
The appellant argued that the show cause notice was time-barred since duty had already been paid as scrap before the notice was issued. However, the Tribunal upheld the time limitation invoked by the Revenue, emphasizing that the duty evasion and suppression of facts warranted the notice within the prescribed period.

In conclusion, the Tribunal dismissed the appeal after considering the lack of evidence to support the appellant's contentions regarding the classification, valuation, and time limitation issues. The decision reaffirmed the duty liability on the ingot moulds under Tariff Heading 8454.00 and upheld the time-barred show cause notice based on the suppression of facts.