1997 (11) TMI 336 - AT - Central Excise

Summary

Issues: Time-barred demand under Notification No. 175/86 due to lack of Small Scale Industries Registration Certificate.

The judgment pertains to an appeal arising from an order passed by the Additional Collector, New Delhi, confirming a demand raised by the Assistant Collector against the appellant, denying the benefit of Notification No. 175/86. The show cause notices issued in 1987 to the appellant, a manufacturing company, alleged non-entitlement to the notification benefit due to the absence of a Small Scale Industries (SSI) certificate. The matter was appealed to the Collector (Appeals) who remanded the case for reconsideration, noting deficiencies in the Assistant Collector's order. Subsequently, a fresh show cause notice was issued in 1988, alleging suppression of facts by the appellant. The appellant contended that they were engaged in manufacturing juicers and mixtures and had filed for duty exemption under the notification. However, discrepancies were noted in the SSI certificate issued to the appellant, leading to the demand confirmation by the Additional Collector.

Upon careful consideration, the appellate tribunal observed that the earlier and later show cause notices presented different sets of facts regarding the SSI certificate issued to the appellant. The classification list submitted in 1986 was in the name of Monga Industries P. Ltd., not the new unit, Monga Industries. Despite the department's knowledge of the correct entity, show cause notices were erroneously issued to Monga Industries initially. The tribunal concluded that the demands were time-barred due to the discrepancies and the issuance of the show cause notice on new facts in 1988. Consequently, the tribunal held that the demand was not sustainable and allowed the appeal solely on the grounds of being time-barred, without delving into the merits of the case.

In summary, the judgment revolved around the issue of a time-barred demand under Notification No. 175/86 concerning the absence of a valid SSI certificate. The tribunal found discrepancies in the show cause notices issued to the appellant, leading to the conclusion that the demands were time-barred due to the differing sets of facts presented. As a result, the appeal was allowed on the limited question of time bar, without addressing the substantive merits of the case.