2004 (10) TMI 498 - AT - Central Excise

Summary

Issues:
Whether an assessee is required to deposit amounts collected as Central Excise Duty/Cess with the Department under Section 11D of the Central Excise Act.

Analysis:
The case involved the appellant clearing paper reels on payment of duty for conversion into reams at another unit and then transferring them to their depots. The Department contended that the appellant collected excise duty from customers on expenses incurred during conversion and at the depots but did not deposit these amounts with the Government as required by Section 11D of the Central Excise Act. The charge of suppression was based on the appellant's failure to disclose collecting amounts akin to excise duty/cess. The issue was whether the appellant was obligated to deposit such collected amounts with the Department.

During the hearing, both sides presented their arguments. The appellant's advocate contended that even if the legal requirement was to deposit such amounts, the Department did not mention this provision in the show cause notice. However, upon examining the show cause notice and the order-in-original, it was noted that both documents referenced Section 11D of the Central Excise Act. The provision mandates that any person collecting amounts representing excise duty must deposit them in the Government Treasury. In this case, the appellant did collect additional duty/cess but failed to deposit it. Consequently, the lower appellate authority's decision confirming the demand was upheld.

In conclusion, the appeal was rejected, affirming the obligation of the assessee to deposit amounts collected as Central Excise Duty/Cess with the Department under Section 11D of the Central Excise Act. The judgment emphasized the importance of complying with statutory provisions regarding the deposit of excise duty amounts collected from customers to avoid allegations of suppression and non-compliance with the law.