9911796707
TMI Blog1996 (6) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... of the SCN it was mentioned that proviso to sub-section (1) of Section 11A is attracted and the appellant wilfully suppressed the fact of cancellation of SSI registration and availed the said exemption irregularly in contravention of the rules. It is further seen that in the statement of facts, the allegation made is as follows :- They have wilfully suppressed the fact of cancellation of SSI registration with retrospective effect i.e. 30-9-88 and further they have not also intimated the fact of DGTD recognition given to them. 3. A perusal of the show cause notice goes to show that suppression on their part is alleged on two counts, namely, - (i) SSI registration with retrospective effect was wilfully suppressed by them; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to your letter cited. On inspection of the unit by the General Manager, District Industries Centre, Chinglepet, it was noticed that your unit is still holding a SSI certificate and that you have applied for COB licence. You have not obtained the COB licence so far. You are, therefore, informed that it is not possible to consider the application for IFST deferral payment under medium/large scale industries. You are requested to file application with General Manager, District Inds. Centre to obtain eligibility certificate as an SSI unit if you desire so. A perusal of this letter goes to show that the appellant was not a SSI unit though they were eligible for a certificate as a SSI unit. This certificate has not been obtained, as could be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in terms of the above letters issued by the concerned authorities, the appellant acted on a bona fide manner and there can never be a question of wilful suppression with an intention to evade payment of duty. The appellant was also paying duty at the standard rate at the time when the SSI registration was cancelled. This is another factor which strengthens that the appellant always acted bona fide and the moment the appellant crosses the limit of Rs. 35 lakhs they were eligible to apply for a certificate. 9. The learned Counsel drew our attention to the press note issued by the Govt. of India with respect to the SSI units dated 19-5-75 and the same is page 80 of the paper book, which is reproduced below :- However, if a small scale u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.). 12. It is thus seen that the ingredients postulate a positive act and failure to pay duty or failure to mention any fact is not necessarily due to any wilful suppression. But the facts narrated above clearly goes to show that the appellant from the beginning was acting on a bona fide belief and he had been corresponding with the authorities concerned and in terms of their letters he was under the belief that he remained a SSI unit. In the case cited by the learned Counsel, the circumstances were similar to this case. In such circumstances, the extended period cannot be invoked in this case. Therefore, we are of the view that the demand is barred by limitation. In this view of the matter, it is not necessary for us to go into the meri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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