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TMI Blog2015 (8) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... nto the details of the said notification inasmuch as learned counsel for the appellants submitted at the outset that he was accepting the position that the excise duty was payable on the goods manufactured. He, however, presses these appeals only on the ground of limitation arguing that the show cause notices issued to all the appellants were beyond the period of six months and therefore, were time-barred. It is this aspect which needs to be determined in the present appeals. The periods which are involved for which the duty is demanded and the dates on which the show cause notices were issued to each of the appellants are mentioned in tabulated form hereunder :- S. No. Name Statements Period Show Cause Notice 1. Yogesh Steel Industr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond the period of six months. However, the respondents-Department invoked the provision of proviso to Section 11A of the Excise Act on the ground that there was mis-representation on the part of the appellants and the action of the appellants were not bona fide and therefore the extended period of limitation of five years would apply in these cases. 3. In order to appreciate the aforesaid stand taken by the respondent, few facts relevant for determining the issue of limitation are recapitulated below :- 4. The appellants are engaged in manufacturing of rolled products, such as bars and rods of iron and non-alloy steel, round bars, C.T.D. bars, etc. This is done from two sources. The appellants obtain re-rollable scraps/material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be inputs on which duty has already been paid." 6. The Department took the view that insofar as appellants are concerned, they do not fulfill the two conditions stipulated in the aforesaid proviso and therefore, would be liable to pay the excise duty as they were not entitled to the exemption under the aforesaid Notification No. 208/83 because of the said reason. The appellants on the other hand, maintained that they were fulfilling these conditions and therefore, the exemption should continue. 7. In the year 1983, after the issuance of the said Notification, the respondent-authorities had instructed the appellants to take license under the Excise Act. The appellants did not obtain the said license as in their opinion th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken in Usha Martin Industries's case and referred the matter to Larger Bench. Ultimately, the Constitution Bench in 'Collector of Central Excise, Vadodara v. Dhiren Chemical Industries' [2002 (139) E.L.T. 3 (S.C.)] overruled the Usha Martin Industries's case. This pronouncement came only in the year 2002. 9. It would be clear from the aforesaid judicial journey that the issues involved in the present case remained entangled in judicial battle for quite some time and only in the year 2002, the hazy picture was clarified. In such a scenario, if the appellants took the decision that they were fulfilling the conditions mentioned in the Notification No. 208/83 and had not taken the licence under the Act, it cannot be stated that the afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We notice that the appellants had obtained licence but the same was delicenced subsequently. There was a dispute with regard to exemption of these materials and the matter had been pending for issue of Notification under Section 11C of the Central Excises and Salt Act, 1944. The department had recorded statements from appellants as far back as 14-12-86 and show cause notice was issued only on 31-10-88. There is no finding recorded by the Collector regarding factors leading to wilful suppression and intention to evade duty. The appellants have submitted that they were holding a bona fide belief and with regard to non-dutiability of the item as the issues had been contested and that all the facts were with the knowledge of the department. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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