2000 (9) TMI 778 - AT - Central Excise

Summary

Issues:
Challenge of duty demand on the ground of limitation.

Analysis:
The judgment revolves around the challenge of a duty demand based on the issue of limitation. The duty amount of Rs. 7,07,945.67 was confirmed for the period from 1-8-91 to 21-2-92 through a show cause notice issued on 28-8-96. The appellant argued that the notice was time-barred due to a change in classification following a Supreme Court judgment in 1995.

The appellant contended that they had filed classification lists declaring block board under a specific sub-heading at a nil rate of duty, which were approved by the Asstt. Commissioner. However, a subsequent Supreme Court judgment reclassified block boards under a different heading. The issue was whether the extended period of limitation could be invoked due to the Supreme Court's judgment in 1995.

The Tribunal considered the arguments from both sides and noted that the classification of block boards was initially in favor of the appellants based on Tribunal decisions. The Asstt. Commissioner had approved the classification lists, which were not appealed by the Revenue. The Tribunal emphasized that the assessments were not provisional and had attained finality.

The Tribunal concluded that since the assessments had become final and were not appealed against, they could not be reopened post the Supreme Court's judgment altering the classification. As a result, the notice issued in 1996 for the period in question was deemed time-barred. The appeal was allowed in favor of the appellants on the grounds of limitation, providing consequential relief.

In summary, the judgment addressed the issue of duty demand challenged on the basis of limitation, focusing on the impact of a subsequent Supreme Court judgment altering the classification of goods. The Tribunal ruled in favor of the appellants, deeming the notice issued after the final assessments as time-barred and allowing the appeal on the grounds of limitation.