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TMI Blog2008 (8) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... Gurpreet Singh, CGSC, for the Petitioner. Shri Akshay Bhan, Advocate, for the Respondent. [Order per: Rajesh Bindal J.].- This order will dispose of five appeals bearing Central Excise Appeal Nos. 36,70,71,83 and 149 of 2005. The facts have been noticed from Central Excise Appeal No.36 of 2005. 2. The revenue is in appeal before this court against the order passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for short, "the Tribunal"), in Appeals No. 3088 and E/3089/03-NB (SM), dated 20.11.2003, raising the following substantial questions of law:- "(i) Whether the Tribunal was justified in setting aside demand when GP Sheets are not the input for tractor parts ? (ii) Whether the findings of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, the GP sheets, so purchased, were clandestinely sold in the market and HR/CR sheets were purchased without invoices and used in the manufacture of OE parts. As duty payable on GP sheets was higher, the same was claimed as Modvat credit. 5. A notice was issued to the assessee to show cause as to why Modvat credit to Rs. 3,44,398/- availed by it from January 1997 to May 1999 be not withdrawn on account of fraud committed by it. In spite of number of opportunities given to the assessee, he neither appeared nor filed any reply to the show cause notice. The Adjudicating Authority vide order dated 29.4.2003 confirmed the demand of Rs. 3,44,398/-, besides imposing penalty of equal amount on the assessee in addition to the penalty of Rs.75, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sheets clandestinely without payment of any duty whereas GP sheets purchased against the invoice on payment of excise duty were sold in the market clandestinely. The submission is also that it does not make sense that a manufacturer will use costlier raw material to manufacture a part once the requirement by the person placing order for the supply of parts is for cheeper material. It is further submitted that fraud committed by the assessee is fully established from the inquiries conducted by the Department from the Original Equipment Manufacturers to whom the assessee was supplying the parts who clearly stated that they never placed any order for manufacture of parts out of GP sheets and it was further submitted that GP sheets are not used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was further held by the Tribunal that the case of extended period of limitation was made out. 10. On the other hand, learned counsel for the assessee submitted that though admittedly the alleged evasion of duty came to the notice of the Department way back in 1999 but still the show cause notice was issued on 26.3.2002. The assessee, in fact, had disclosed complete facts to the Department in the form of returns filed on statutory Form RT-I2 in which it was clearly mentioned that the assessee had purchased GP sheets and was using the same in the manufacture of OE parts. The entire process was well within the knowledge of the Department. Even otherwise, there was a complete violation of the principles of natural justice. The assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is evident that before the issuance of show cause notice to the assessee on the basis of Intelligence report, certain inquiries were conducted by the Department from HMT, Steel Authority of India Limited and other persons to come to a conclusion that the requirement of the Original Equipment Manufacturers was for manufacture of parts from HR/CR sheets only and in fact GP sheets were not fit for manufacture thereof. Certain discrepancies in the invoices issued by the supplier of GP sheets to the assessee were also pointed out. Though as is evident from the record, the assessee did not appear before the Adjudicating Authority but still the fact remains that the material which was collected at the back of the assessee in the preliminary in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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