2001 (3) TMI 710 - AT - Central Excise

Summary

Issues:
1. Benefit of exemption under Notification No. 202/88-C.E.
2. Time-barred duty demand.
3. Availability of deemed credit.

Benefit of exemption under Notification No. 202/88-C.E.:
The case involved a dispute regarding the entitlement to the benefit of exemption under Notification No. 202/88-C.E. The respondents, engaged in re-rolling iron and steel, claimed that the materials used by them were covered by the notification, thus exempting them from duty. However, it was revealed that certain materials used by them were not covered by the notification, leading to a duty demand and penalty imposition. The Commissioner (Appeals) reversed the order-in-original, citing that the demand was time-barred and the respondents were entitled to deemed credit. The Tribunal, following a precedent set in Vivek Re-Rolling Mills v. CCE, Chandigarh, ruled that the benefit of the notification could not be extended to the respondents due to the nature of materials used. The appeal on this issue was dismissed.

Time-barred duty demand:
The main contention revolved around whether the duty demand raised against the respondents for the period 1-3-1988 to 7-9-1990 was within the statutory time limit. The Tribunal noted that the demand was issued after a significant period, making it time-barred as the show cause notice was served on the respondents much later. The Revenue argued that the extended period of limitation could be invoked due to alleged suppression of material facts. However, the Tribunal found no evidence of suppression as the respondents had duly disclosed the details of materials used in their classification lists, which were approved without objection by the Excise Department. Consequently, the demand for the disputed period was deemed time-barred, and the appeal on this issue was dismissed.

Availability of deemed credit:
Regarding the availability of deemed credit, the Commissioner (Appeals) had allowed such credit to the respondents, which was contested by the Revenue. The Tribunal concurred that deemed credit was not legally available to the respondents. The appeal on this specific issue was dismissed, affirming that the respondents were not entitled to deemed credit.

In conclusion, the Tribunal upheld the impugned order of the Commissioner (Appeals) as it found no legal infirmity in the decision. The appeal filed by the Revenue was dismissed, indicating that there was no merit in challenging the Commissioner's decision.