2010 (11) TMI 932 - AT - Central Excise

Summary

Issues:
1. Demand of duty for printed duplex board sheets under Tariff Heading 4811.90
2. Demand of duty for pouches of papers under Tariff Heading 4819.90
3. Invocation of extended period of limitation on the ground of suppression of facts with intent to evade payment of duty
4. Contestation of limitation by the appellants based on filed declarations
5. Adjudication of the case regarding the sustainability of the suppression of facts allegation

Analysis:
The appellants, engaged in manufacturing printed duplex board sheets and pouches of papers, filed an appeal against the impugned order passed by the Commissioner (Appeals). The issue revolved around two show-cause notices, one demanding duty for printed duplex board sheets and the other for pouches of papers. The extended period of limitation was invoked due to alleged suppression of facts to evade duty, leading to confirmation of the demand by the adjudicating authority and subsequent affirmation by the Commissioner (Appeals).

Regarding the limitation issue, the appellants argued that they had filed necessary declarations for both products, declaring the classification under specific Tariff Headings. The Revenue contended that the appellants did not accurately declare the products, leading to the demand confirmation using the extended period. However, the Tribunal found that the appellants had indeed filed declarations acknowledging the products and their classifications, thus rendering the allegation of suppression of facts unsustainable. As the necessary declarations were filed under Rule 173B of the Central Excise Rules, the extended period of limitation could not be invoked solely based on the alleged misclassification in the declarations.

In the judgment, it was emphasized that the duty demand was made by invoking the extended period of limitation under Section 11A of the Central Excise Act, but since the appellants had filed accurate declarations with acknowledged classifications, the demand was set aside on the grounds of limitation. The Tribunal ruled in favor of the appellants, allowing the appeal and overturning the impugned order, highlighting the importance of filed declarations in determining the sustainability of allegations related to suppression of facts with intent to evade payment of duty.