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2014 (8) TMI 536 - AT - Central ExciseExtended period of limitation - claiming duty exemption on furnace oil - Non fulfillment of conditions of Notification No.1/95-CE - Held that:- As per the amended provisions, for claiming duty exemption on furnace oil, two conditions were required to be satisfied i.e., Furnace Oil is required for the boilers used in the textile mill and the procurement of such Furnace Oil duty free should be approved by the jurisdictional Commissioner of Customs on the recommendations of the Development Commissioner. In the facts of the case before us, there is no dispute that no approval from the Commissioner of Customs was obtained nor any recommendations were given by the Development Commissioner. Therefore, the respondent was clearly ineligible for the benefit of Notification No.1/95-CE. The appellant had also filed D-3 intimation for the procurement of the goods which was required to be verified by the department. Therefore, at the time of verification of the goods obtained duty free, the Bond officer should have examined whether the goods have been moved in accordance with law, which the Bond Officer has failed to do. Therefore, for the failure of the Bond Officer, who verified the receipt of the goods, the department cannot invoke extended period of time. Therefore, the finding of the lower appellate authority that the department had knowledge of the entire transactions and yet they failed to issue show-cause notice within the normal period of time and consequently the demand become time barred cannot be faulted. - Decided partly in favour of Revenue.
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