2018 (12) TMI 149

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..... ich was lying in stock on 31/08/1997. The appellant cleared such waste and scrap without payment of duty availing the benefit of Notification No. 49/1997 dated 01/08/1997. This notification granted exemption to waste and scrap arising out of manufacture of various goods on which duty of Excise was paid under Section 3A of the Central Excise Act, 1944. It is pertinent to record that the Government introduced compounded levy on various products in terms of Section 3A of the Central Excise, Act 1944 initially notified to be effective from 01/08/1997. Many Notifications including Notification No. 49/1997-CE were issued w.e.f. the said date. However, the scheme for payment of Central Excise duty under Section 3A was postponed and finally introdu .....

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..... ry much aware of the fact that the waste and scrap was being cleared by the appellant by availing the benefit under Notification No. 49/1997, without payment of duty. In view of confusion which existed in the field as a result of postponement of the compounded levy from 31/08/1997 to 31/06/1998, the appellant sought the clarification of the department by issue of their letter dated 08/02/1998 to the Jurisdictional Superintendent of Central Excise regarding the liability of Payment of duty on the waste and scrap which was lying in stock on 31/07/1997. But she added that no clarification was received from the Department. 5. The Ld. Advocate also submitted that the Department had issued the Show Cause Notice after a gap of as much as five yea .....

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..... sed by issue of Show Cause Notice, dt. 01/09/2002 by invoking the extended period of limitation available to Revenue in terms of Section 11A of the Central Excise Act, 1944. But after perusing the Show Cause Notice, we fail to see any single act on the part of the appellant of collusion or suppression. No specific fact or omission thereof has been cited in the Show Cause Notice. On account of the postponement of date of introduction of the compounded levy scheme from 01/08/1997 to 01/09/1997, there was confusion in the field. To seek clarification about the liability for payment of duty in respect of waste and scrap, the appellant has addressed a letter to the Jurisdictional Superintendent of Central Excise. No clarification appears to have .....

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