9911796707
TMI Blog1990 (10) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Rules with intent to evade payment of duty inasmuch as they had manufactured carbon paper falling under Item 17 of the First Schedule to the Central Excises Salt Act, 1944 ( CET , for short) and cleared the same for the manufacture of carbon paper ribbons falling under Item 22-E, CET, in their licensed factory by suppressing the fact of removal of carbon paper. It was further alleged that they had removed the said carbon paper without filing classification list and price list for approval as required under the rules, without determining and paying the appropriate central excise duty on the said carbon paper prior to its removal and without accounting for the said goods in the statutory registers. The period for which demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as to provide that excisable goods manufactured and captively consumed in the factory of production for manufacture of other goods were liable to be levied with the excise duty payable thereon. Even after the said amendment, the Department was entitled to demand duty only for the normal period of limitation under Section 11A of the Central Excises Salt Act unless suppression of material facts or any of the other ingredients required for invoking the extended period of limitation was alleged and proved by the Department. This principle was laid down by the Supreme Court in its judgment in J.K. Spinning Weaving Mills Ltd. Another v. Union of India Ors. -1987 (32) E.L.T. 234 (S.C.). In so far as the appellants were concerned, the que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants. It is also a fact that during the material period the prevailing understanding of law in the light of several judgments of different High Courts was that excisable goods manufactured and captively consumed within the factory of production for manufacture of other goods would not be liable to be charged to Central Excise duty. It was with a view to giving a quietus to this matter that Central Excise Rules 9 and 49 were amended and the amendments were given retrospective effect by Section 51 of the Finance Act of 1982 so as to provide for levy of duty on such goods. This consideration apart, we also note that in the case of these appellants, the question of classification of carbon paper was itself a matter of dispute. Whereas th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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