9911796707
TMI Blog1999 (12) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... Rallis India Ltd. purchasing 90% of the shares of Rockwell India Ltd. Rockwell India Ltd. and subsequently Rallis Machines Ltd. were manufacturing electrical fans. All those fans manufactured by them were purchased by Rallis India Ltd. who was marketing the same in wholesale to dealers. Rallis Machines Ltd. submitted price lists of the goods manufactured by them periodically. Those price lists were approved by the department. Goods were removed from the factory on the basis of those approved price lists. While matters stood like this, department issued first show cause notice dated 17-6-1975 claiming Rs. 4,45,417.61 as having been short -levied during the period from 1-8-1974 to 28-2-1975 on account of extra commercial consideration which f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no suppression of material facts from the notice of the department. 3. We heard learned counsel representing the appellant and the learned Departmental Representative at length. We perused the records. 4. Transactions covered by the three show cause notices relate to periods prior to October, 1975. The law which was applicable prior to September 1975 should govern the issues raised in the said three show cause notices. Rule 10 of the Central Excise Rules, 1944 dealt with recovery of duties or charges short-levied or erroneously refunded. That Rule, as it stood prior to October 1975, fixed a period of three months. It stated that when duties have been short-levied, the proper officer may, within three months from the date on which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly for that short period. The transaction which took place anterior to that period is barred. The third show cause notice is prior to the amendment of Rule 10 which was brought into effect from 6-8-1977. Then the period was only three months. But the transaction which was taken into consideration in that show cause notice is of the period from 1-3-1973 to 31-7-1974. The last transaction covered by that notice is three years prior to the date of notice which is hopelessly barred. Thus, except for a short period covered by the second show cause notice of about a month, all the transactions covered by the three show cause notices are clearly barred by limitation. No amount could have been recovered from the manufacturer, Rallis Machines Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning the duty. When the show cause notice dated 17-6-1975 specifically stated that the department was aware of the agreement entered into between the assessee and Rallis India Ltd. the averment in the third show cause notice dated 1-7-1977 that they suppressed facts cannot be sustained. The averments in the earlier show cause notices dated 17-6-1975 and 25-11-1975 make it crystal clear that all the facts concerned with the transactions between the assessee and Rallis India Ltd. as discernible from the agreement entered into between them were made known to the department. Therefore, there was no suppression of facts on the side of the assessee giving room for the department to initiate action on the ground of suppression of material facts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re between related persons. 9. At this juncture, it is worthwhile to refer to the decision of the Supreme Court in the case of C.C.E., Baroda v. Cotspun - 1999 (113) E.L.T. 353. As per that decision, when the goods were removed on the basis of approved price list, department cannot issue show cause notice claiming short-levy in relation to the earlier removals. In the light of that decision as well, the order impugned in this appeal is unsustainable. 10. At the time of filing the appeal, appellant prayed for dispensing with predeposits as required by Section 35F of the Act. This Tribunal by order dated 22-3-1975 directed them to deposit a sum of Rs. 10 lakhs. Pursuant to that order, appellant deposited Rs. 10 lakhs. The said amount shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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