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TMI Blog2001 (9) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Advocate, submitted that with the expansion of Canal Irrigation, the Irrigation Department of the then United Province had set up departmental workshop to make and repair iron sluices, gates, gears, and other lift hardwares; that the Provincial Legislature enacted U.P. State Tubewells Act, 1936 which came into force w.e.f. 13-3-1937; that with the advent of power driven pumps, these workshops started making parts to repair and replace the worn off parts of the State tubewells; that 4 show-cause notices were issued to the workshop for demanding Central Excise duty for the period from 1993-94 to May, 1999; that the Commissioner Central Excise confirmed the demand of Central Excise duty amounting to Rs. 56,16,117.40 and imposed a penalty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -C.E. which provides exemption to all excisable goods manufactured in a workshop within a factory and intended to be used in the said factory or any other factory of the same manufacturer or maintenance of machinery installed therein. He also claimed the benefit of small scale exemption Notification No. 1/93 and its successor notification. He, further, submitted that the provisions of proviso to Section 11A(1) of the Act is not attracted to the facts of the present matter as there was no fraud, collusion or wilful mis-statement or suppression of facts or contravention of any provision with an intent to evade payment of duty; that they were under the bona fide belief that they were not under any obligation to either take registration or pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication No. 88/86-C.E. dated 10-2-86; that the benefit of Notification No. 281/86 is not available to the workshop inasmuch as the parts were meant for repair/manufacture of P.D. Pumps and not of any machinery within the factory of manufacture or any other factory of the manufacture. The learned D.R. also relied upon the decision in the case of TISCO Ltd. v. CCE, Madras, 2000 (118) E.L.T. 104. He, further, mentioned that as far as Notification No. 1/93 is concerned the matter has to be remanded to the Adjudicating Authority to ascertain as to whether the conditions specified in the notification have been complied with or not. He also mentioned that the parts of P.D. pumps are marketable since such parts are easily available in the market; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gly extended period of limitation is invokable; that in first show cause notice dated 28-4-98 the period covered is from 1993-94 to 1997-98 (upto February, 1998); that thus part of the period falls after the introduction of Sections 11AB and 11AC in the Central Excise Act, and accordingly penalty and interest under these sections will be imposable on them; that in any case the penalty under Rule 173Q of the Central Excise Rules is imposable for the entire period of demand. 6.We have considered the submissions of both the sides. Parts of P.D. Pumps attract Central Excise duty. Section 3 of the Act provides that the Central Excise duty is leviable on all goods manufactured or produced in the country. As parts of P.D. Pumps are manufactured b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned D.R. that the fact of manufacture and removal of the excisable goods from the workshop were not disclosed to the Department and the vital information was suppressed from the Department on account of which Central Excise duty was not paid. Further, mere existence of exemption notification cannot be a sufficient ground to entertain a bona fide belief that their product is exempted from payment of duty. The exemption is generally available subject to conditions specified in the notification and unless the fact of manufacture is brought to the notice of the department it cannot be examined whether the exemption is available or not. We are, therefore, of the view that provisions of proviso to Section 11A(1) are attracted in the present matt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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