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TMI Blog2024 (5) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... se but with reference to the validity of the show-cause notice the order-in-original as well as the decision of the Tribunal, this Court is not precluded from entertaining this appeal as the grounds canvassed before the adjudicating authority as well as the Tribunal was not on the valuation issue per se but with regard to the scope of the show cause notice, whether the extended period of limitation could have been invoked and the correctness of the decision arrived at by the adjudicating authority. Therefore, this appeal is maintainable before this Court. In no uncertain terms, the appellant/assessee informed the department that they will be availing exemption under notification dated 10.02.1986 in respect to the products manufactured by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le with the department which should be manifest in the show cause notice as to how in the prima facie view of the department there was misdeclaration, misstatement with intention to evade payment of duty. This being conspicuously absent, it has to be necessarily held that the department could not have been invoked the extended period of limitation. The order passed by the learned Tribunal as well as the adjudicating authority and the show-cause notice are set aside and the substantial questions of law are answered in favour of the appellant/assessee - Appeal allowed. - HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM AND HON'BLE JUSTICE HIRANMAY BHATTACHARYYA Appearance : For the Appellant : Mr. Vishal Agarwal, Adv. Mr. Abhishek Deodhar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainable as the matter pertains to the classification issue as to whether the goods manufactured by the appellant would qualify as handicraft and be entitled for the benefit of the exemption from payment of excise duty as per notification 76/86 dated 10.02.1986 and the circular of the Board in Circular No. 76-73/6/2004 dated 28.01.2004. 4. As noted above, the substantial questions of law raised before this Court are with regard to the scope of the show-cause notice issued to the appellant as also the order-in-original and on the ground that order-in-original as prevailed beyond the scope of show-cause notice. Thus, it is required to be seen as to under such circumstances whether this Court would be entitled to entertain this appeal and adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed before the adjudicating authority as well as the Tribunal was not on the valuation issue per se but with regard to the scope of the show cause notice, whether the extended period of limitation could have been invoked and the correctness of the decision arrived at by the adjudicating authority. Therefore, we hold this appeal is maintainable before this Court. 9. The appellant/assessee by communication dated 16.03.2004 addressed the department stating that they are engaged in manufacturing of readymade garments, accessories to the readymade garments and made up articles of textiles and most of their products are categorized by hand printing and hand embroidery and these are categorized as handicrafts in terms of the circular dated 28.01. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llegations in the show-cause notice and how the demand made in the show-cause notice is not sustainable on merits. In paragraph 8 of the reply, the assessee specifically dealt with the issue regarding limitation and contended that the show-cause notice fails to discharge the burden of proving that the assessee willfully and intentionally evaded the payment of duty. In support of its contention, the assessee placed reliance on the decision of the Hon ble Supreme Court in Tamil Nadu Housing Board v. CCE, Madras [1994 (74) E.L.T. 9 (SC) and the decision of the High Court of Delhi in New Decent Footwear Industries v. Union of India [2002 (15) E.L.T. 71 (Del)]. Thus, the adjudicating authority was expected to adjudicate the show-cause notice and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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