9911796707
TMI Blog2008 (7) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... assification list filed, so suppression is not proved – therefore, larger period not invocable - E/239/2005 - A/1441/2008-WZB/AHD, - Dated:- 24-7-2008 - Ms. Archana Wadhwa, Member (J) and Shri B.S.V. Murthy, Member (T) Shri T.C. Nair, Advocate, for the Appellant. Shri M.M. Mathkar, JDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. - The appellants are engaged in manufacture of various articles of plastic such as ABS sheets, Polycarbonate sheets, disposal cups, trays etc. falling under Chapter Heading 39.20 and 39.23 of Schedule to CETA, 85. The assessee had filed classification list No. 96/92 dated 30-4-92 for their product "Disposable Cups" falling under Chapter Sub Heading No. 3923.90 claiming Nil rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had not maintained separate account, a show cause notice was issued on dated 22-5-95 which finally resulted in confirmation of demand of duty on "Disposable Cups" amounting to Rs. 34,29,634/- for the period Apr.'92 to Feb.'94 and from 31-1-95 to 22-3-95 after due adjudication process. Further, penalty of equal amount was imposed under Rule 173Q of CER, 1944. Both demand and penalty were upheld by Commissioner (Appeals). Two show cause notices have been issued and first show cause notice was issued for the period Jan.'95 to Mar.'95, involving duty of Rs. 9,59,749/- and second show cause notice was issued on 22-5-97 for the period Apr.'92 to Feb.'94. 4. Heard both sides. Learned advocate on behalf of the applicant submits that the show c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice. This being the position, it is definitely clear that the fact of reversal of Modvat credit on a daily basis was known to the department since it had been mentioned in RG23A Part II registers extract of which were produced to the Department. Further when classification list was filed, the departmental officers are supposed to verify the list and also understand the manufacturing process and the eligibility for exemption. Therefore, invoking extended period cannot be upheld and on this ground demand for the period from Apr.'92 to Feb.'94 fails. 6. As regards the period from Jan.'95 to Mar.'95, show cause notices have been issued in time. The ground taken in the show cause notice for raising the demand is that the Modva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e day as per the Chartered Accountant's certificate is adequate for the purpose of Notification. We find that Commissioner (Appeals) in his order has observed that the appellants have failed to substantiate the fact that the amount of credit availed as input was reversed by them prior to the clearance of the exempted finished goods. There is no observation regarding the correctness of the certificate submitted by the appellant that debits have been made on day to day basis. Therefore, we feel that in the interest of natural justice, the matter has to be remanded to original adjudicating authority to get this fact verified as to whether the reversal of credit has been made on day to day basis and whether there is any omission. If the reversa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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