1997 (12) TMI 414 - AT - Central Excise

Summary

Issues:
The appeal challenges the Order-in-Original dated 1st April, 1991 of Addl. Collector of Central Excise, Ahmedabad, alleging suppression of information regarding design engineering and service charges, leading to a demand of Rs. 82,985.50.

Details of the Judgment:

Issue 1: Alleged Suppression of Information
- The appellant argued that the collection of charges was disclosed in Balance Sheets submitted to the department and relevant information was promptly provided upon request.
- The Department contended that wilful suppression was evident and cited Section 11A regarding the time limit for issuing duty demands.

Issue 2: Time-Barred Show Cause Notice
- The Tribunal noted that the information regarding design and engineering charges was conveyed to the Department on 1st September, 1987, but the Show Cause Notice was issued on 6-9-1989, indicating a time-barred demand.
- Precedents such as S.D. Kemexc Industries v. C.C.E., Calcutta and M.P. Vegetable Fruits Products v. Collector of Central Excise, Raipur were cited to support the time-barred argument.
- The Tribunal highlighted cases like Mopeds India Ltd. v. C.C.E. and Kamal Plywood & Allied Industries P. Ltd. v. C.C.E., Meerut to emphasize the importance of timely issuance of Show Cause Notices.

Judgment Outcome:
- The Tribunal set aside the impugned order and allowed the appeal solely on the point of limitation, without delving into the merits of the case that were not pleaded during the proceedings.