9911796707
TMI Blog1998 (2) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... r only registered small scale Industrial unit and availing benefits under exemption Notification No. 175/86-C.E., dated 1-3-1986 as amended, are engaged in the manufacture of furniture and parts thereof wooden as well as those made from polyurethane foam (rigid) falling under sub-heading 9403.00. 4. On 17-10-1988 officers of the Preventive Branch of Central Excise, MOD-I, New Delhi, visited the factory premises of the appellants seized 1,017 pieces of furniture parts, describing the same as Articles of Rigid Polyurethane Foam valued at Rs. 1,45,440.00 and resumed their entire accounts statedly for reason that the said articles of P.U. Foam were being manufactured without obtaining a Central Excise Licence. A statement of one of the Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e invocation of extended period of 5 years under Section 11A of Central Excises and Salt Act, 1944, for the demand of duty was not warranted or justified as they had suppressed nothing from the department with any mens rea, that the provisions of Rule 9 of the Central Excise Rules, 1944, were also not attracted in the case as no clandestine removal of the goods had been undertaken, that their activity of manufacture of parts of furniture was under their bona fide belief that these were classifiable under Chapter 94 of the Central Excise Tariff for which they were eligible for full exemption, that assuming though not admitting that the products under reference fall under Chapter 39 and duty was leviable thereon @ 15% adv. as per Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scribed. 7. It is incorrect to suggest that the appellants suppressed anything from the department with the intent to evade excise duty. They acted in the bona fide belief that their products are covered under Chapter 94 of the Central Excise Tariff and being a duly registered SSI unit their clearances upto first Rs. 15 lacs were fully exempt in terms of Notification No. 175/86-C.E., dated 1-3-1986. 8. In the above stated circumstances the extended period of five years under Section 11A of the Central Excises and Salt Act, 1944, is not attracted for any demand of duty. He further stated that without prejudice to the foregoing the adjudicating authority has failed to consider that assuming though not admitting that the furniture parts ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere not specified in Notification No. 175/86, dated 1-3-1986 (as amended) for SSI benefits. The benefits of Notification No. 217/86-C.E., dated 1-3-1986 as amended are also not applicable in their case as the goods i.e. articles of PU foam were used in the goods which were cleared without payment of Central Excise duty. Party s plea that in case the duty is demanded from them, the facility of Modvat should be allowed to them is also not tenable as the party could not follow the statutory provisions under the Central Excise Rules, 1944. It is also found that party had suppressed the fact of manufacture and clearance from the department with intent to evade payment of duty of excise and the extended time limit of five years is applicable in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough no reference to the same has been made by either side we would like to mention that since in the normal course, the tax is on fully manufactured articles it is not clear why the semi-finished articles were in the first place seized and what happened to them thereafter. It is also not clear why the Collector has not referred to articles of material other than PU foam and articles which were of a very different type such as mirrors and wall clock frames etc., in the operative portion of his order but we are not labouring these points futher in the abovesaid circumstances). 13. In respect of fully manufactured articles held as liable to duty as above the ld. Counsel s request for allowing consideration of Modvat benefit, if any, due is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
