Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2012 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 925 - AT - Central ExciseWaiver of pre-deposit - Held that:- appellant has shifted focus from excisability, classification etc. to limitation for the present purpose. We have to consider this issue at this stage. The statement of the Microbiologist has been perused and the same indicates that mineral water was manufactured by the appellant by a process involving several stages, viz, treatment with chlorine gas, filtration, blending, reverse osmosis, treatment with UV light etc. This statement of the expert was only corroborated by a senior functionary of the Company. Note 2 to Chapter 22 of the Tariff Schedule is, prima facie, applicable to the facts of this case and, therefore, there is no escape from the fact that the appellant was manufacturing mineral water chargeable to duty of excise under the appropriate sub-heading of Heading 2201. Apparently, the manufacturing process was not disclosed by the appellant voluntarily to the department at any stage. The internal auditors of the department visited the factory and gathered the information in May 2009. The show cause notice in this case was issued in 2010 invoking, apparently rightly so, the extended period of limitation under the proviso to Section 11 A (1) of the Central Excise Act. The plea of bona fide belief is itself untenable, inasmuch as the law prevailing during the material period clearly required payment of duty of excise on the appellant's product and also required addition of clearances of the exempted product (ready mixed concrete) to the clearances of mineral water for the purpose of the SSI exemption notification as amended. The appellant cannot plead ignorance of law. Prima facie , therefore, the demand is not time.-barred - Conditional stay granted.
|