9911796707
TMI Blog2001 (7) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Rules, 1944. 2. The appellant is a company engaged in the manufacture of air conditioner and compressors for captively using the same in the air-conditioners. They are also manufacturing other engineering goods. 3. The appellant has two divisions, namely cooling appliances business division manufactures and clears room air conditioners and split air conditioners, while air conditioning business division manufactures and clears packaged air conditioners required for use in central air conditioning plants. Its factory is situated at Thane. Whenever the appellant manufactures compressors and utilises the same in the manufacture of air conditioners, the said compressors did not suffer payment of duty in view of existence of a Notifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant that they have failed to inform the Department regarding the description of intermediate goods, the classification under the Tariff, the assessable value, rate of duty applicable and the duty payable on this intermediate goods and also charged the assessee that the assessee with an intent to evade payment of duty, wilfully made mis-statement in the classification list regarding their entitlement for intermediate product namely, the gas compressor for exemption under Notification No. 217/86 dated 2-4-1986 suppressing the fact that such compressors would be used in the manufacture of room/split air conditioners, which are to be cleared to 100% EOU etc., whereby there has been evasion of duty. Show cause notice was also issued on 3-5-1994 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e had also informed the department about the manufacture of air conditioners as their final product. He specifically invited our attention to the RT 12 returns for the month of January 1992 where in respect of item 2A and B which refer to compressors which were cleared to 100% EOU on payment of duty. He further says that the assessee has not failed to inform the department regarding the nature of the activity and also he stressed the point that right from 1986 onwards this is a type of classification list and RT 12 returns which have been filed. The assessee has taken for granted that the practice adopted by the assessee was not at all violating any of the provisions of law. He also states that the judgment of the Tribunal in the case of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cleared the air conditioners to 100% EOU and also to local parties. Whenever such event happens namely sale to customers other than 100% EOU, it pays duty claiming exemption for compressors under Notification 217/86. He however concedes that as far as supplies to IMF and Skylark appellant is prepared to pay the duty. As far as the other clearances namely prior to March 1992 is concerned he relies heavily on what is contained in the affidavit by Mr. Salunkhe, who is the Senior Excise Executive. In the said affidavit paragraph 4, it is stated that the compressors which are captively consumed is removed from the factory without payment of duty under Notification 217/86, and it was further stated that when it was captively consumed it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e subsequent judgment, namely Flender Mechniell Gears Ltd. v. CCE - 2001 (127) E.L.T. 582 at 854 goes to show as follows : However, as is evident from evaluation of the evidence narrated above, prior to the decision of Larger Bench in L T case (supra) the view held on the issue in a number of decisions in favour of appellants. Therefore, one cannot say . the appellants had suppressed the facts or violated the provisions of the Central Excise Law with intent to evade payment of duty etc., calling for invocation of larger period for the payment of duty under proviso to Section 11A. In this view of the matter, the demand is barred. (Emphasis is supplied). 11. As against this, we find that there is a specific reference to claiming of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
