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2015 (1) TMI 215 - AT - Central ExciseCENVAT Credit - Evasion of duty - Suppression of facts - Invocation of extended period of limitation - Held that:- For the period from 1995-2000, a show cause notice had been issued to the appellant to demand duty on various scrap items sold by them and at that time the used dryer screen felt even though the same was being sold was completely omitted. Thereafter from 2000 onwards according to the records produced before us, the appellant was intimating the department as and when they cleared the metal scrap, used dryer screen felt, etc. They were also submitting a copy of the invoice and the amount realized. Same way in March, 2002 Superintendent in-charge of the appellant advised them not to submit invoices relating to the sale of used dryer screen felts. The above facts emerging from the records would show that even the departmental officers felt that there was no duty liability on the used dryer screen felts cleared by the appellant and therefore the steps as mentioned above were taken. That being the position, we find it extremely difficult to agree with the observations made by the lower authorities that appellants have deliberately and intentionally evaded payment of duty, suppressed facts and sold them without intimating to the department. Therefore in our opinion extended period could not have been invoked in this case. As regards the duty demand within the normal period, only one sale covered by the invoice dated 16-7-2004 involving value of the felt of ₹ 43,430/- would be liable to excise duty. In the decision of the Tribunal in the case of CCE, Hyderabad-III v. Navodhaya Plastic Industries Ltd. [2013 (12) TMI 82 - CESTAT CHENNAI], the Tribunal had taken a view in para 10 which we reproduce for better appreciation. Appellant would be liable to pay duty in terms of para 8 of the decision of the Larger Bench of this Tribunal in the case of Navodhaya Plastic Industries Ltd. (supra) - there will be no penalty, the interest applicable from the date of liability till the date of payment is also payable - Decided partly in favour of assesse.
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