9911796707
TMI Blog1999 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturing process the officers felt that such plates were excisable products and should have discharged burden of duty before they were captively consumed in the manufacture of circles. A show cause notice dated 7-1-1991 was issued alleging that the fact of manufacture of plates as intermediate products was suppressed by the appellants with intent to evade payment of duty. Duty leviable on such plates during the period 16-1-1986 to 30-6-1990 totally amounting to Rs. 2,40,44,230.85 was demanded. Allegations as to penalties were also made. The Collector in the impugned order confirmed the duty. He also confirmed a further amount of Rs. 34,23,584.24 on the ground that when the value of production of plates was taken into account, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered the submissions made. 6. In dealing with the argument of limitation the ld. Collector held as follows : There is a submission by the assessee that the show cause notice is hit by time in as much as they have classified the same giving the process of manufacture etc. to the department and department have approved the said C.L. On perusal of the copies of the C.L.s viz. 1/86 w.e.f. 20-12-1985, 31/86 w.e.f. 1-3-1986, 75/87 w.e.f. 1-4-1987, and 264/87-88 w.e.f. 1-3-1988, I notice that there is nothing to show that the department was aware of the plates coming at the intermediate stage of the manufacture of the circles which was cleared without payment of duty being exempted. While C.L.s other than 264/87-88 w.e.f. 1-3-1988 do n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packing bundles. 9. The process narrated above shows that before the circles are cut the intermediate products are plates and sheets. Since the manufacturing process give both these terms, the separate definitions of plates from sheet during 1986-87 and 87-88, on which reliance was placed by the Collector in the citation above is not material. 10. What is material is that during the entire period covered by the show cause notice the assessee had declared both plates and sheets as intermediate product arising during the manufacture of circles. In such a situation department had knowledge and the charge of suppression and misdeclaration raised against the assessees cannot stand. The extended period therefore cannot be sustained. The dema ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
