2000 (6) TMI 178 - AT - Central Excise

Summary

Issues Involved:
Challenge of Central Excise duty demand for the period before the show cause notice issuance.

Analysis:
The appellant challenged the demand of Central Excise duty for the period preceding the show cause notice issuance. The appellant, a manufacturing company, classified its products under specific headings in the Central Excise Tariff Act. However, a show cause notice was later issued, reclassifying the product under a different heading and demanding differential duty. The appellant relied on a Supreme Court decision stating that such demands can only be made from the date of the show cause notice issuance.

The Departmental Representative argued that the effect of the Supreme Court decision had been nullified by Section 110 of the Finance Act, 2000. This section validated actions taken under the Central Excise Act, allowing demands for duty within a specified period, even if the classification had been approved earlier. The retrospective effect of this provision made the demand enforceable for the appellant.

Upon reviewing the submissions from both sides, the Tribunal found that Section 110 of the Finance Act, 2000 explicitly allowed for demands of differential duty for past periods, even after classification list approval. The Parliament had given retrospective effect to these provisions, making the demand for Central Excise duty valid. Consequently, the Tribunal rejected the appeal, upholding the sustainability of the Central Excise duty demand for the disputed period.