1998 (8) TMI 345 - AT - Central Excise

Summary

Issues involved:
1. Additional demand raised without show cause notice.
2. Finalization of provisional assessments.
3. Time-bar for raising demands after classification list approval.
4. Compliance with principles of natural justice.
5. Legality of demand raised after a significant period.

Detailed Analysis:

Additional demand raised without show cause notice:
The appeal challenged an order-in-appeal related to an additional demand issued by the Superintendent of Central Excise without a show cause notice for the period April 1982 to November 1982. The Collector of Central Excise (Appeals) observed the absence of a show cause notice and noted that the demand was hit by a time-bar as it was raised after five years.

Finalization of provisional assessments:
The Revenue argued that assessments were provisional even after the classification lists were approved, and finalization occurred only after a Tribunal order. The Respondents contended that assessments were finalized earlier under a speaking order by the Asst. Collector of Central Excise, emphasizing the absence of a show cause notice and hearing.

Time-bar for raising demands after classification list approval:
The Asst. Collector approved classification lists in favor of the assessee in 1983. However, the Department filed an appeal against this order, leading to a subsequent demand without issuing a show cause notice. The Tribunal cited a Supreme Court case emphasizing the necessity of informing the assessee of grounds for additional duty before making them liable.

Compliance with principles of natural justice:
The Collector of Central Excise (Appeals) highlighted discrepancies in the demand process, noting the absence of specific details regarding the demand's basis and the lack of a show cause notice. The order emphasized the importance of providing an opportunity for the assessee to respond, as mandated by the principles of natural justice.

Legality of demand raised after a significant period:
The demand raised after a significant period without a show cause notice and proper hearing was deemed legally unsustainable. The Tribunal rejected the Revenue's appeal, upholding the Collector of Central Excise (Appeals)'s decision, considering the matter's age and the fair view taken by the appellate authority.

In conclusion, the Tribunal upheld the decision, emphasizing the importance of adherence to procedural requirements, principles of natural justice, and the legality of demands raised within a reasonable timeframe with proper notice and hearing.