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2014 (8) TMI 133 - AT - Central ExciseExtended period of limitation - non payment of duty on crossing the SSI exemption limit - Bonafide belief - manufacturer of bakery products such as biscuits and cakes and also manufactures ice-creams - Held that:- bona fide belief is not a blind belief and bona fide belief has to be formed after consulting experts in the field or after seeking clarification from the department - department has clearly directed the appellant that the appellant's products are excisable and excise duty liability requires to be discharged. In spite of this direction, the appellant chose to dispute this and contended that they are not liable to pay duty as biscuits and other bakery products cannot be treated as excisable products. Thus, despite receipt of the directions from the department, the appellant failed to discharge excise duty liability. Further, the appellant did not submit details sought by the department and continued to drag the issue by prolonged correspondence. In view of the above, suppression of information on the part of the appellant is clearly established - show cause notice is well within the time period of five years and accordingly the demand and interest thereon is sustainable and consequently penalty under Section 11A is also sustainable - Following decision of Commissioner of Central Excise vs. Mehta & Co. [2011 (2) TMI 2 - SUPREME COURT OF INDIA] - Decided against assessee.
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