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TMI Blog2010 (7) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... of an intermediate product i.e. Di-ethyl Alcohol, which is a specified product liable to central excise duty under chapter sub-heading 2204.10 of the First Schedule to the Central Excise Tariff Act, 1985. Pursuant to investigation, show cause notice came to be issued to the respondent for discharging the duty burden in respect of Denatured Ethyl Alcohol. The said proceedings culminated into an order dated 30.4.2003 made by the Commissioner confirming duty demand of Rs.19,23,896/- and imposing penalty of identical amount. Separate penalty was also imposed on the Managing Director. Tribunal held that failure to declare addition of DEP to ENA not amounted to suppression and extended period not invokable and matter remanded for considering dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i-ethyl Phthalate (DEP) is added so as to denature it and render the same unfit for human consumption. The officers of DGCEI visited the factory of the respondent on 29.8.2001 and found that the addition of DEP to ENA results in the manufacture of an intermediate product i.e. Di-ethyl Alcohol, which is a specified product liable to central excise duty under chapter sub-heading 2204.10 of the First Schedule to the Central Excise Tariff Act, 1985. Pursuant to investigation, show cause notice came to be issued to the respondent for discharging the duty burden in respect of Denatured Ethyl Alcohol. The said proceedings culminated into an order dated 30.4.2003 made by the Commissioner confirming duty demand of Rs.19,23,896/- and imposing penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as regards manufacture of DEA in the case of M/s Charishma Cosmetics Pvt. Ltd. and Helene Curtis Ltd. also occurs in the factory of the assessee or otherwise. For this purpose the Commissioner got prepared a spot examination report through Assistant Commissioner of Central Excise. However, copy of the said report was not supplied to the respondent assessee. The assessee had also requested for cross examination of certain persons, however, the said request had been turned down by the Commissioner. 4. The respondent carried the matter in appeal before the Tribunal, who vide the impugned order held in favour of the assessee in so far as question of invocation of the larger period of limitation is concerned and as regards other period r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner that the earlier order was not quashed or set aside by the Tribunal were clearly against the basic jurisprudence of law. 8. On merits, the Tribunal found that no proper inquiry had been made by the Commissioner as regards the process adopted by the assessee as compared to the process of manufacture adopted by Charishma Cosmetics and J.K. Helene Curtis. The Tribunal also found that non supply of the Assistant Commissioner's report was in violation of principles of natural justice, and accordingly remanded the matter to the Commissioner to verify all the aspects and to supply Assistant Commissioner's report to the respondent, to re-examine its plea of cross-examination and to re-decide the matter after affording reasonable op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the statutory requirements under the Medicinal Toilet Preparations (M TP) Act, it is obligatory for a manufacturer to denature ENA to make it unfit for human consumption. Hence, non disclosure of the said fact on the part of the assessee would not amount to suppression so as to call for invocation of the extended period of limitation. As regards the merits of the case, non-supply of the report of the Assistant Commissioner which has caused serious prejudice to the respondent certainly amounts to breach of the principles of natural justice. Moreover, in light of the findings of fact recorded by the Tribunal upon appreciation of the evidence on record to the effect that no proper inquiry had been made as regards the process of manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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