2000 (9) TMI 179 - AT - Central Excise

Summary

Issues Involved:
1. Time-barred demands.
2. Denial of benefits under various Rules, Circulars, and Notifications.

Summary:

1. Time-barred Demands:
The appellants contested that the duty demands were time-barred as they were raised beyond the six-month period. The Tribunal referred to the dates of the show cause notices and the periods they covered. The first notice dated 3-4-1995 covered the period 4/94 to 12/94, and the second notice dated 28-9-1995 covered 1/95 to 3/95. No allegations of suppression of facts or fraud were made against the appellants. The Tribunal, applying the principle from the case of CCE, Chandigarh v. Kashmir Conductors, ruled that the demands were indeed time-barred.

2. Denial of Benefits under Various Rules, Circulars, and Notifications:
The appellants argued that they were entitled to benefits under Rules 12, 12A, 13, 14, and various Circulars and Notifications, which were wrongly denied by the Commissioner. The Tribunal noted that the appellants operated two registered factories and used the yarn manufactured in one factory for producing export goods in the other. The Tribunal found ample evidence of actual exports, including invoices, bills of lading, and shipping bills, which were not disputed by the Revenue department.

The Tribunal held that the clearances for export should not be included in computing the exemption limit under Notification No. 1/93. The Tribunal also noted that procedural lapses should not deny the appellants the benefits of Notifications Nos. 47/94 and 49/94, and Circulars Nos. 15/89 and 105/16/95-CX, especially when there was no evidence of clandestine removal for home consumption. The Tribunal cited precedents where procedural non-compliance was not considered fatal for claiming benefits.

The Tribunal concluded that the Commissioner erred in denying the benefits and set aside the impugned order, allowing the appeals with consequential reliefs permissible under the law.