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TMI Blog2010 (7) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of alcohol based cosmetics is chargeable to excise duty? (B) Whether or not in the facts and circumstances of the case the Tribunal has committed substantial error of law in observing that invocation of larger period by the Department is not justified ? (C) Whether or not in the facts and circumstances of the case the Tribunal has committed substantial error of law in remanding case back to the adjudicating authority with finding/observations adverse to the Department ?" 2. The facts stated briefly are that 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... confirmed the duty demand and penalty etc. in terms of the earlier order. In the said order the Commissioner observed that the Order-in-Original passed by him had not been quashed and set aside by the Tribunal but he had been directed to reexamine the case in the light of the decision in case of Commissioner of Central Excise, Thane Vs. Charishma Cosmetics Pvt. Ltd. and Helene Curtis Ltd. The Commissioner held that since his earlier order has not been set aside, he reinstates his findings relating to excisability, dutiability and confirmation of demand of duty on DEA, demand of interest on the duty so confirmed, confirmation of demand of Cenvat credit availed on the inputs found short and imposition of penalty contained in the Order-in-Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of alcohol based cosmetics. That non-disclosure as regards manufacture of Denatured Ethly Alcohol amounts to suppression of material facts attracting the larger period of limitation. 6. Before the Tribunal, on behalf of the respondent-assessee it was contended that the report of the Assistant Commissioner on which reliance had been placed by the Commissioner had not been supplied to it, which had resulted in serious prejudice to it. The assessee also challenged the order on the ground of limitation contending that there was no mis-statement or deliberate suppression of facts on its part so as to invoke the larger period of limitation. 7. As can be seen from the impugned order of the Tribunal, as regards reinstating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e required to be in knowledge of. That such facts known to the both sides would not render omission, if any, on the part of the assessee into suppression or mis-statement with an intention to evade payment of duty. The Tribunal also noted that as similarly situated assesses were not paying duty on denatured ethyl alcohol, the respondent entertained a reasonable belief that it was not liable to pay excise duty on such product. The Tribunal was accordingly of the view that the department was not justified in invoking the larger period of limitation and remanded the matter to the Commissioner to decide the same on merits for the period within limitation. 10. In the light of the facts noted hereinabove, it cannot be said that the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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