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TMI Blog2006 (8) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... Sl. No. Appeal No. Name of the Party SCN No. Date OIO No. Date Period Duty (AED) Rs. 1. E/1265/1998 M/s. Gowtami Textile Industries Sales Corporation v. The Commissioner of Central Excise Visakhapatnam OR. 52/95 Dt. 17-10-95 3/98-ASR Dt. 20-2-98 passed by the CCE, Vizag 1-11-90 to 31-3-95 and 24-4-95 to 31-7-95 Duty: 32,75,816Penalty: 6,50,000 Interest u/s 11AB 2. E/1308/98 M/s. Sri Sai Fabrics v. CCE, Vizag O.R. 47/95 Dt. 9-10-95 4/98-ASR Dt: 25-2-98 passed by the CCE, Vizag 1-10-90 to 31-7-95 Duty: 6,42,193 Penalty: 1,30,000 Interest u/s. 11AB 3. E/1310/9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cesses, but it was used only for the purpose of pumping the water to the overhead tanks. However, their plea has been rejected on the ground that there were admissions made by the party and that there was a huge use of diesel. The appellants denied that they had made any admissions pertaining to use of power in the manufacturing of these processes. Their contention is two fold. (a) that the Show Cause Notice does not allege wilful suppression of facts with intention to evade duty and, therefore, the invocation of larger period is not sustainable and (b) that when they have not used power for various processes and that the department was aware of their activity, therefore, the question of invoking larger period does not arise for confirming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n case as reported in 2006 (197) E.L.T. 87 (Tri.-Bang.) In this case, this bench, after detailed consideration, rejected the Revenue appeal and held that the benefit of the Notifications are required to be extended to these activities. The learned Counsel submits that there was an amendment to the subsequent period granting the benefit even if power is used. However, for the earlier period, the benefit of Notification was not to be extended if power was used. It is the case of the assessees that power has not been used for the various activities even as per the admitted position from the Show Cause Notice. The power was used only for pumping the water to the overhead tank which cannot be treated as a process of manufacture. Therefore, he su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of installations in column no. 5, it is clarified that we do not have any recorded observations made during the inspections to say that the machines noted in column no. 5 are installed and put into operation He submits that in view of the subsequent clarification given by the Inspector of Factories, the conclusion drawn by the Commissioner is not based on any evidence of mahazar drawn by the Inspecting Officers. No mahazar has been drawn with regard to the use of electricity and the said machines were working on electric motors. 5. The learned JCDR submits that in the case of M/s. Shri Dhanalakshmi Cloth Dyeing Printing Works, there is a letter given by the Factory manager admitting the use of power. In counter, the learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machine. Similar statements have been given by the assessees in other cases also. They have not resiled these statements. In view of this fact, the conclusion has to be drawn that electricity has been used for running the machines. In view of this evidence, we have to uphold the findings of the Commissioner with regard to the use of electricity for running the machines and hence, the benefit of Notification has been rightly denied. (ii) In so far as the demands being barred by time, it is seen that for the purpose of invoking larger period, the Show Cause Notice should clearly indicate that there is deliberate suppression of facts with an intention to evade duty as noted by the Apex Court and in the judgments and the gist of orders ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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