Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 269 - CESTAT CHENNAIInvocation of extended period of limitation - Suppression of facts - Clearance of goods without payment of duty - goods were sold without mentioning the description of the fabrics on the invoices but only indicating sort numbers - Imposition of penalty - Held that:- Appellants are manufacturers of grey cotton fabrics other than Denim fabrics falling under Chapter Heading 5207.20 attracting "Nil" rate of duty. Investigation also revealed that the appellants have manufactured and processed Denim Fabrics and cleared the same to M/s.KGDL . It is noticed that the appellants adopted two methods. On the one hand, they have received the yarn from KGDL and manufactured grey denim fabrics on job work basis and returned the same to M/s.KGDL who is the principal manufacturer. They have also manufactured Denim Fabrics on their own account wherein they have purchased the yarn, manufactured the Denim Fabric and sold to KGDL on principal to principal basis. The adjudicating authority has already dropped the demand on denim fabrics manufactured and cleared on job work basis and confirmed the demand in respect of yarn manufactured by the appellants on their own account and sold to KGDL. The veracity of these documents need to be verified along with the original records available with the department so as to arrive at a conclusion whether there is any suppression of facts or extended period can be invoked in this case for demanding duty or whether there is wilful suppression of facts. Therefore, we are of the considered view that the original authority should verify the original documents, including letters as indicated above, and also to take into consideration the directions of the Hon'ble High Court by its order dt. 8.4.2014 and examine the issue in the light of the above directions and pass fresh orders on the duty confirmed by invoking extended period under proviso to Section 11 AC of the Act. Accordingly, we set aside the impugned order in so far as that portion of order confirming the duty demand and imposition of penalty on the appellants No.1 & 2 as well as on Shri M. Thiagarajan, Managing Director of PML (Appellant No.3). - Matter remanded back - Decided in favour of assessee.
|