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TMI Blog2000 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... ch were cleared by them without payment of Central Excise duty to their store situated at A-11, Okhla Industrial Area, Phase-I, New Delhi; that such cleared PCBs were stated to be used in the manufacture of Black White TVs by the Appellants. The Commissioner, under the impugned Order-in-Original No. 52/98 dated 31-8-1998, confirmed the demand of duty amounting to Rs. 3,25,95,890/- and imposed penalty of equal amount under Section 11AC of the Central Excise Act holding that the Appellants had failed to establish that the impugned PCBs were used in the manner stipulated in the Notification No. 48/94; that they had not been able to co-relate as to which particular PCB had gone to the manufacture of which Black White T.V; that they were awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 certificate for obtaining the goods at the nil or concessional rate of duty; that at PCB unit they maintain a stock and despatch register showing the quantity manufactured and despatched under delivery challans to the Central Stores where a stock ledger is maintained; that the inputs from the Central Stores are issued to the T.V. Unit under the cover of Material Issue Note (MIN); that the inputs received are duly recorded in the register maintained by sub-store/floor store. The learned Consultant, further, submitted that the Appellants have declared about availing of exemption under Notification No. 48/94-CE to the jurisdictional Excise Authorities; that the Commissioner ought to have taken into consideration their private records which c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Central Excise Act cannot be brought into play because provisions being penal in nature cannot be invoked for the past period and secondly since the proviso to Section 11A(1) of the Act is not applicable. Penalty under Section 11AC and interest under Section 11AB cannot be demanded. 4.Countering the arguments, Shri M.P. Singh, learned D.R., submitted that the benefit of the exemption from payment of duty is available subject to the following procedure set out in Chapter X; that the benefit of notification was available only on satisfying the condition stipulated in the Notification which has not been complied with and as such exemption is not available to the Appellants under Notification No. 48/94. He relied upon the decision in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le clearing the PCBs from their unit to the Central Stores at A-11, Okhla Industrial Area, Phase-I. It is their contention that benefit of notification is available to them without following the procedure of Chapter X. The Revenue on the other hand has contended that once the condition specified in the notification is not complied with, the benefit of the notification cannot be extended to the assessee. We find substantial force in this submission. The notification is issued by the Central Government in exercise of power vested in it under Section 5A of the Central Excise Act. This Section empowers the Central Government to exempt the excisable goods generally either absolutely or subject to conditions as may be specified in the notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Range. It is on the strength of such CT-2 certificate that the goods will move from the originating factory under the relevant exemption. The copies of the CT-2 certificate had to be filed with the relevant monthly returns. It is further provided under Chapter X Procedure that in case the goods are not satisfactorily accounted for then the duty will be chargeable." 7.In the present appeal the impugned goods were cleared to Central Store and not directly for the manufacture of T.V. sets. The decision in Mahindra Mahindra Ltd. was delivered on the basis of Supreme Court's judgment in Thermax Pvt. Ltd. and also the Appellants therein showed the movement of goods from factory to factory. In the appeal before us the goods did not mov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioners were actually used in the hospital. This condition was held to be not substantive and mandatory. We thus hold that the Appellants were not eligible for the benefit of Notification No. 48/94-C.E. in respect of PCBs which were cleared to their Central store room at A-11, Okhla Industrial Area, Phase-I. 8.The extended period of limitation is also applicable as the fact of clearing the goods without observing procedure of Chapter X was not in the knowledge of the Department. The declaration filed by them in 1994 (Page 53 of Appeal Papers) simply claimed exemption under Notification No. 48/94-C.E. without indicating any other details. The name of their other factory at A-219, Okhla Industrial Area I was mentioned as per serial No. 3 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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