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2010 (7) TMI 169 - GUJARAT HIGH COURTDemand – Limitation - the respondent-assessee is engaged in manufacture of various toilet preparations such as after-shave lotion, deo-spray, mouthwash, skin creams, shampoos, etc. One of the main ingredients used in the manufacture of various items is Extra Natural Alcohol (ENA). The respondent procures ENA from the local market on payment of duty, to which Di-ethyl Phthalate (DEP) is added so as to denature it and render the same unfit for human consumption. The officers of DGCEI visited the factory of the respondent on 29.8.2001 and found that the addition of DEP to ENA results in the manufacture of an intermediate product i.e. Di-ethyl Alcohol, which is a specified product liable to central excise duty under chapter sub-heading 2204.10 of the First Schedule to the Central Excise Tariff Act, 1985. Pursuant to investigation, show cause notice came to be issued to the respondent for discharging the duty burden in respect of Denatured Ethyl Alcohol. The said proceedings culminated into an order dated 30.4.2003 made by the Commissioner confirming duty demand of Rs.19,23,896/- and imposing penalty of identical amount. Separate penalty was also imposed on the Managing Director. Tribunal held that failure to declare addition of DEP to ENA not amounted to suppression and extended period not invokable and matter remanded for considering demand under normal period. Held that- impugned Tribunal order sustainable.
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