1999 (3) TMI 218 - AT - Central Excise

Summary

Issues:
1. Excisability and dutiability of dye grade cotton fabrics emerging as an intermediate product in the process of manufacturing cotton fabrics.
2. Jurisdiction and legality of the proceedings concerning the Show cause notices issued under different rules.
3. Time-bar limitations under Central Excise Law for the various Show cause notices.

Issue 1: Excisability and dutiability of dye grade cotton fabrics:
The appeal challenges Order-in-Original No. 41/93 confirming a duty amount concerning dye grade cotton fabrics. The appellant argues that subsequent revised Show cause notices should be treated as fresh notices due to significant changes in duty computation. The legality of the order is contested based on the repeal of old Rule 10 and subsequent rules, questioning the jurisdiction and time limitation. The appellant also raises concerns about the demand being hit by limitation under Central Excise Law.

Issue 2: Jurisdiction and legality of proceedings:
The appellant contests the jurisdiction and legality of the Order-in-Original based on the repeal of old Rule 10 and subsequent rules. The appellant relies on judgments from the High Court of Madras stating that proceedings under the repealed rules lapsed without any savings clause. The Tribunal decides that the Order-in-Original is illegal due to the repealed rules being inapplicable at the time of the order.

Issue 3: Time-bar limitations under Central Excise Law:
The appellant argues that the demand confirmed in the Order-in-Original is time-barred under successive limitation rules. The Tribunal distinguishes the present case from previous rulings and finds that the revised Show cause notices demanding higher duty amounts significantly affect the appellant's rights. Consequently, the revised notices are deemed fully barred by limitation, along with the first and last Show cause notices partially falling under time bar restrictions. The Tribunal concludes that a large part of the demand is hit by limitation, leading to the setting aside of the Order-in-Original.

In conclusion, the Tribunal rules in favor of the appellant, setting aside the Order-in-Original due to the repealed rules and time-bar limitations. The decision emphasizes the importance of jurisdiction, legality, and adherence to time limitations in excise duty cases.