1999 (7) TMI 211 - AT - Central Excise

Summary

Issues:
Appeal against Order-in-Original confirming demand for manufacture and clearance of Copper/Brass/Zinc ingots; imposition of penalty under Rule 173Q.

Detailed Analysis:

1. Time Bar Issue:
- Appellants argued that the order was time-barred as the show cause notice invoked the extended period despite prior adjudication on the same issue.
- Appellants provided detailed history of declarations, classification lists, and interactions with the department since 1983.
- Tribunal noted that the department was fully aware of the facts, including the use of imported raw materials and the manufacturing process.
- Previous show cause notice was adjudicated upon, denying duty exemption without imposing a penalty due to approved classification lists.
- Tribunal cited precedents (Neyveli Lignite Corpn. Ltd. and Khatao Makanji Spg. & Wvg. Co.) to support the argument that a subsequent notice invoking extended period is not sustainable.

2. Misdeclaration and Intent Issue:
- Appellants contended that they provided detailed declarations and explanations, showing no intent to evade duty.
- Tribunal referenced case law (Kanchana Industries and Tamil Nadu Housing Board) to support the argument that correct declarations and explanations negate misdeclaration and intent to evade duty.

3. Exemption Claim Issue:
- Appellants claimed exemption under specific notifications and explained the grounds for the exemption.
- Tribunal referred to Northern Plastic Ltd. case to establish that such claims to exemption based on correct declarations do not amount to misdeclaration.

4. Rule 9(2) Invocation Issue:
- Appellants argued that Rule 9(2) should not be invoked as all prescribed procedures were followed, and goods were cleared as per approved classification lists.
- Tribunal cited ITC case to support the argument that Rule 9(2) applies only in cases of clandestine removal, not when goods are cleared as per approved lists.

5. Decision and Conclusion:
- Tribunal set aside the order-in-original as time-barred and allowed the appeal with consequential relief as per law.
- Detailed analysis of declarations, interactions with the department, and adherence to procedures formed the basis for the decision to overturn the original order.

This comprehensive analysis showcases the meticulous consideration of facts, legal precedents, and procedural aspects leading to the Tribunal's decision to set aside the order-in-original on the grounds of being time-barred and granting relief to the appellant.