TMI Blog2006 (2) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the demand of an amount of Rs. 3,55,81,610.71 is hit by limitation. We also observe that the jurisdictional authorities did come to know of the activities of the appellants during their visit on 12-1-1988 and therefore, they could have issued demands within the normal period of limitation at least for the period 6 months prior to that date till January, 1989 which does not appear to have been done. Thus, it is necessary that the departmental authorities issue demands within the normal period of limitation to protect the revenue interest particularly in cases where there are contrary decisions of Tribunal/Court. As regards the other Show Cause Notice dt. 18-7-1988, We are of the view that in respect of seized goods, there is no requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (T) AND T. ANJANEYULU (J), MEMBERS For the Appellant : Samir Chakraborthy and Abhijeet Biswas, Advs. For the Respondent : N.V.B. Nair, J.D.R. ORDER Chittaranjan Satapathy, Member (T) 1. Heard both sides. The period in dispute is from May, 1986 to January, 1989 and the amounts in dispute are Rs. 3,71,92,640.90 as duty, an equal amount of penalty and redemption fine of Rs. 20 Lakhs. 2. The impugned order has been passed in respect of:- (i) De novo proceeding in pursuance of Hon ble High Court, Patna, Bench at Ranchi s order dated 21-8-98 in C.W.J.C. 197 of 1991 against the order-in-original 20-MP/Collr/90, dated 22-11-1990 passed by Collector, Central excise, Patna in respect of SCN No. V(73)(15)27/88/Part. 5523, dated 4-12-1989, and (ii) SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imitation of five years cannot be applied. In this connection, he cites the decisions of the Hon ble Supreme Court in the following cases :- (1) Jaiprakash Industries Ltd. v. CCE - 2002 (146) E.L.T. 481 (S.C.) (2) Padmini Products v. Collector of Central Excise - 1989 (43) E.L.T. 195 (S.C.). He points out that in the case of Jaiprakash (cited supra) it has been held by the Bench of three Judges of the Honourable Supreme Court that extended period of five years is not invokable when there is a bona fide doubt as to non-excisability of goods due to divergent views of the High Courts. It has also been held therein that mere failure or negligence in not taking licence or not paying duty is not sufficient to invoke extended period under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered after the decision in the case of Mahindra Mahindra (cited supra) holding that there must be some positive act on the part of the party to establish wilful mis-declaration or wilful mis-statement and suppression of fact and not merely failure to declare. In any case, the decision of the Hon ble Supreme Court in the case of Jaiprakash (cited supra) is applicable in the instant case as there were conflicting, on the issue and the demand notice dtd. 4-12-1989 was clearly issued beyond 6 months of the relevant period which was May, 1986 to January, 1989. Hence, we are of the view that the demand of an amount of Rs. 3,55,81,610.71 is hit by limitation. We also observe that the jurisdictional authorities did come to know of the activities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicating Commissioner has imposed a penalty of Rs. 3,71,92,640.90 equivalent to duty amount of Rs. 3,55,81,610.71/- plus Rs. 16,11,030.19/-. The learned Advocate for the appellants has contested the penalty amount on two grounds. He has submitted that since the excisability of goods was in doubt on account of conflicting decisions and the appellants had a bona fide relief regarding non-excisability of the same, no penalty can be imposed. He also argues that since the earlier order in respect of the Show Cause Notice dated 4-1-1989 imposed a penalty of Rs. 10 lakhs against which the appellants filed a writ petition in the Hon ble Patna High Court and the case was remanded for re-decision, no higher penalty can be imposed on de novo adjudi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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