9911796707
TMI Blog1989 (2) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the Tribunal was legally justified in restricting the demand of duty to six months prior to the date of issue of show-cause notice, particularly in a case where longer period was invoked on the ground of suppression of information in the declaration furnished by the respondent. 2. The respondent manufactured patent and proprietary (P&P) medicines falling under T.I. 14E and also pharmacopoe preparations falling under T.I. 68 of the Central Excise Tariff of an aggregate value of Rs. 20,59,338.60 and cleared during the period of 1-4-1979 or 31-3-1980, the same without payment of duty, availing the benefit of exemption Notification No. 80/80. 3. Under the provisions of sub-clause (ii) of clause 2 of Notification No. 80/80, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... medicines claiming exemption under Notification No. 80/80. A show-cause notice was issued to the respondent who was asked to explain as to why excise duty in respect of Patent and Proprietary medicines manufactured and cleared by it should not be demanded under proviso (a) to Rule 10(1) of the Central Excise Rules and why penalty should not be imposed on it under Rule 173Q of the Central Excise Rules, 1944 for having cleared the goods without payment of duty in contravention of Rule 173Q (a) and (d) of the Central Excise Rules. 6.After submission of the reply by the respondents, the Collector of Central Excise held the respondents to be ineligible for the benefit of the two notifications and therefore duty was demanded from them in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed." 7. The respondent filed an appeal before the Tribunal. The Tribunal considered the matter and noted that the appellant's case was that the demand for duty for the period beyond six months was time barred; and the respondent's case was that the demand for the period beyond 6 months from the receipt of show cause notice, was time barred inasmuch as there was no suppression or misstatement of facts by the appellant with a view to evade payment of duty. In support of its claim the respondent produced classification list approved by the authorities during the period 1978-79, and also produced extracts from the survey register showing that the officers had been visiting its factory from time to time and also taking note of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r T.I. 68 is acceptable in the facts of that case. The Departmental authorities were in full knowledge of the facts about manufacture of all the goods manufactured by them when the declaration was filed by the appellants. That they did not include the value of the product other than these falling under T.I. 14E manufactured by the appellants has to be taken to be within the knowledge of the authorities. They could have taken corrective action in time. We, therefore, find there was no warrant in invoking longer time limit beyond six months available for raising the demand. So far as the demand for the period within six months reckoned from the date of receipt of the show cause notice is concerned, we observe that the appellants case is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar case. The Tribunal came to the conclusion that the facts referred to hereinbefore do not warrant any inference of fraud. The assessee declared the goods on the basis of their belief of the interpretation of the provisions of the law that the exempted goods were not required to be included and these did not include the value of the exempted goods which they manufactured at the relevant time. The Tribunal found that the explanation was plausible, and also noted that the Department had full knowledge of the facts about manufacture of all the goods manufactured by the respondent when the declaration was filed by the respondent. The respondent did not include the value of the product other than those falling under Tariff Item 14E manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X
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