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TMI Blog1985 (8) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... to blowers. The blowers themselves were built into ABT Oil cooler and supplied to I.C.F. as air blast transformer oil coolers. The Department s case is that there was no declaration regarding the manufacture of blowers which were captively used in the building of transformer oil cooler. A show cause notice was issued on 29-9-82 invoking the extended period under Rule 9(2) of the Central Excise Rules, 1944 for the above demand. Though the notice also refers to violation of Rules 52A, 53, 173B, 173C, 173P and 173G in the totality of circumstances of the case, the Collector did not impose any penalty under Rule 173Q but confined his order to one of demanding duty. In appeal three points were raised viz. - (i) The assessment of the blower - w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or. This exemption is obviously available by way of reduction in the quantum of duty payable on electric fans at the time of their clearance. In the present case, no duty was at all paid at the time of clearance which is being demanded now in terms of the Collector s order. Considering the uniqueness of the motors involved and the one to one correspondence between electric motor, electric fan the claim of the party for reduction in calculating the amount of duty payable on the electric fan to the extent of duty paid on the electric motors is a valid one so long as Notification No. 124/65 was in force i.e. upto 31-7-80. However, with effect from 19-6-80 the procedure set out in Rule 56A has to be followed and the amount of duty paid on elect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oration v. Collector of Central Excise, Calcutta-1985 E.L.T. 206. S.D.R., on the other hand, stated that mere intimation regarding manufacture is not sufficient. The provisions of Rule 173 (B), (C), (F) and (G) have not been followed. Hence action under Rule 173Q is maintainable. In regard to set off he urged that the prescribed procedure under Rule 56A has not been followed; in respect of the past, no correlation is possible. 5. The letter dated 21-9-78 is an intimation regarding total production and consumption of fans for use in ABT coolers being less than Rs. 4 lakhs in a financial year and seeking exemption from licensing. Hence, the Department should be deemed to be under notice regarding the manufacture of fans by the appellant-fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iod beginning 1-3-79 is maintainable by invoking the extended period under Rule 9(2). In so far as the demand for the year 1976-77 is concerned it falls well beyond the period of five years referable to Rule 9(2), calculating from the date of issue of the show cause notice and hence cannot be sustained. In respect of the year 1977-78 there is no reference to any intimation to the Department as the intimation on record is dated 21-9-78. The demand in respect of that year is sustainable. 6. In the result the order of the Collector is upheld subject to the above modification that set-off of duty in respect of motors claimed as a special one and utilised in the manufacture of blowers during the years 1977-78 and 1978-79, we allow the appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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