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TMI Blog2004 (8) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacturing grinding rolls and cleared these under sub-heading 7325.20 as cast articles of steel. On 19-10-92 they filed a revised classification list reclassifying the grinding rolls under sub-heading 7325.10 claiming that those grinding rolls were only cast articles of iron and not of steel and the classification was approved on 27-1-93. However, a show cause notice was issued to them by Commissioner-II Hyderabad asking them to show cause why the grinding rolls manufactured and cleared by them should not be classified under sub-heading 8404.00 of the central Excise Tariff Act, 1985 as these are only a part of bowl mill and demanded differential duty besides proposing to impose penalty. The period for demand was from August 1991 to Februar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are being supplied directly from their foundry shop to the customer. He could not show any other evidence. 3. Regarding limitation he pleaded that the following three show cause notices were issued to them within the period of six months :- S/No. SCN No. & date Period Duty (1) OC 84/93 dt. 10-2-93 7/92 to 1/93 Rs. 37,91,715/- (2) OC 686/15-11-93 No period indicated Not quantified (3) OC 265/94/27-4-1994 11/93 to 2/94 Rs. 6,98,552/- He pleaded that these show cause notices are still pending. While personal hearing was given to the appellants on 26-4-2001 only for the show cause notice issued on 15-12-95, no hearing was given for the other show cause notices, thus violating the principle of natural justice. 4. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to use condition in the bowl mills, when they were clearing the rolls with the bowl mills then these were being classified under the sub-heading 8404.00. However when they have cleared these as spares then they have classified these under sub-heading 7325.10. This fact was suppressed by them from the department. They had filed revise classification list on 18-10-92 for grinding rolls as cast articles of iron covered under sub-heading 7325.10 of the Central Excise Tariff Act. Before the approval of this classification list Range officer had asked vide letter OC No. 219/92, dated 17-11-92 whether they were conducting any machining on the cast articles and whether these grinding rolls are part and parcel of any machinery of their products. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Range Superintendent during PBC checks, he immediately issued the first show cause notice covering the period of six months from 7/92 to 1/93 under O.C. No. 84/93, dated 10-3-93. Then the two show cause notices O.C. No. 686, dated 15-11-93 and 265/94, dated 27-4-94 covering the period up to February 94 were issued each within the period of six months. Subsequently the show cause notice covering the period from 8/91 to 2/94 was issued by the Commissioner alleging suppression of fact. He pleaded that when suppression of fact came to the knowledge of the department then they can issue the show cause notice within the period of 5 years even though show cause notice has been issued for a period of six months immediately on detection of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the commissioner on this issue. 8. Regarding application of extended period we find that three show cause notices were earlier issued by the department covering the period from 7/92 to 2/94. The present show cause notice covers the period from 8/91 to 2/94. Thus the period for which the duty has been demanded is overlapping. For the period from 8/91 to 6/92 only the suppression can be alleged and demand can be considered under proviso to Section 11A. Although in Para 5 of the order of the Commissioner, it is mentioned that he is deciding 4 show cause notices including 3 show cause notices No. 64/93, dt 10-2-93, 686/93, dt. 15-1-93 and 265/94, dt. 27-4-94 but he has not given personal hearing for these show cause notices as pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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