1997 (7) TMI 464 - AT - Central Excise

Summary

Issues:
1. Whether the demand for cess is time-barred.
2. Whether Section 13 of the Abolition Act overrides the time-limit under Section 11A of the Central Excise Act, 1944.
3. Whether the Cross Objections filed by the respondents are time-barred.

Analysis:

Issue 1:
The case involved a dispute regarding the payment of cess by the respondents for the period from 1-1-1984 to 30-11-1985. The Revenue claimed that the respondents had a cess liability of Rs. 10,274.55 during this period. However, the Commissioner of Central Excise (Appeals) held that the cess demand was time-barred as there was no wilful misstatement or suppression of facts by the respondents. The lower authority observed that the cess was not levied before the commencement of the Abolition Act on 21st March 1987, and thus, it could not be collected legally thereafter. The Tribunal upheld this decision, stating that the demand was time-barred, irrespective of the question of cess liability.

Issue 2:
The Revenue argued that Section 13 of the Abolition Act authorized the collection of cess that was leviable under the previous Acts without any time limitation, citing a Supreme Court judgment. However, the respondent contended that the cess paid earlier was under pressure from the Department, and they believed that the oil extraction method did not fall under the repealed Acts. The Tribunal rejected the Revenue's argument, stating that Section 13 did not override the time-limit under Section 11A of the Central Excise Act, 1944. Referring to a Supreme Court judgment, the Tribunal held that unless specifically overridden, the time-limit under Section 11A would apply, and in this case, the demand for cess was time-barred.

Issue 3:
The respondents filed Cross Objections seeking a refund of Rs. 14,257.65, contending that the oil cess was not leviable. However, the Tribunal found the Cross Objections to be time-barred as they were filed beyond the stipulated 45-day period under the Central Excise Act, 1944. The Tribunal dismissed the Cross Objections as grossly time-barred.

In conclusion, the Tribunal ruled in favor of the respondents, holding that the demand for cess was time-barred, Section 13 of the Abolition Act did not override the time-limit under Section 11A, and the Cross Objections were dismissed as time-barred.