9911796707
TMI Blog1991 (2) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured by the appellants was classifiable under Item No. 16A(2) of the First Schedule to the Central Excises and Salt Act, 1944, as it stood till 28-2-1986 and under sub-heading 4006.10 of the Schedule to the Central Excise Tariff Act, 1985 from 28-2-1986; (ii) confirmed a demand for duty amounting to Rs. 69,846.85 towards Central Excise duty payable on the aforesaid product cleared from 16-8-1985 to 30-12-1986, holding that the extended period for demand of duty in terms of Section 11A of the Central Excises and Salt Act was applicable to the case; (iii) confirming the valuation of the product as set out in the show cause notice as the value for the purpose of assessment and demand of duty; (iv) held that the appellants were liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise that the aggregate value of clearances of all excisable goods by him or on his behalf, for home consumption, from one or more factories, during the financial year was not likely to exceed Rs. 75 lakhs, and if the aggregate value of clearances of all excisable goods by him or on his behalf, for home consumption, from one or more factories, during the financial year did not exceed Rs. 75 lakhs. By amending Notification No. 183/85-C.E., dated 9-8-1985, serial number 20 of the Schedule appended to the Notification No. 85/85 reading :- "Rubber Products" was substituted by following entry :- "Rubber Products (other than tread rubber and camel back)" The effect of this amending notification was that tread rubber and camel back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncessional rates of duty for two different slabs of clearances -12% ad valorem in respect of the first clearances up to Rs. 7.5 lakhs and 18% ad valorem in respect of the next clearances up to Rs. 17.5 lakhs. Again, the requirement of declaration was set out. 5. Though the learned Counsel and the learned D.R addressed arguments on several aspects of the dispute, we propose first to deal with the aspect of limitation. As noted earlier, the notice of demand covered the period from 16-8-1985 to 30-12-1986. The notice was dated 13-10-1988 and was received by the appellants on 5-11-1988. Therefore, with reference to the normal period of limitation, namely, 6 months from the relevant date, as set out in Section 11A of the Central Excises and Sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tread rubber with intent to evade payment of duty thereon, in the process suppressing material facts from the Central Excise department. In this connection, it has to be noted that the total value of clearances in respect of which duty has been demanded by the Additional Collector in the impugned order is Rs. 1,81,389/- spread over a period from 16-8-1985 to 30-12-1986. This value of clearances was well within the concessional duty exemption slab of Rs. 7.5 lakhs as in force during the currency of Notification No. 184/85, that is, from 9-8-1985 to 13-11-1985. From 14-11-1985 also, duty continued to be leviable at 12% ad valorem on clearances up to Rs. 7.5 lakhs. The admitted position is that the appellants did not make a declaration, did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on No. 184/85, dated 9-8-1985 was mid-term change. The changes occurred in quick succession on 17-3-1985, 9-8-1985 and 14-11-1985. We are, therefore, inclined to give the benefit of the doubt to the appellants and accept their explanation that they were under a bona fide belief that they were not liable to pay duty, take out a Central Excise licence, make declarations and observe the prescribed formalities. These lapses did not amount to deliberate suppression of material facts or willful intention of law with intent to evade payment of duty. We are fortified in this view by the observations of the Supreme Court in its judgment in the case of Collector of Central Excise v. Chemphar Drugs & Liniments -1989 (40) E.L.T. 276 (SC), wherein the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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