9911796707
TMI Blog2006 (8) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Party SCN No. & Date OIO No. & Date Period Duty (AED) Rs. 1. E/1265/1998 M/s. Gowtami Textile Industries & Sales Corporation v. The Commissioner of Central Excise Visakhapatnam OR. 52/95 Dt. 17-10-95 3/98-ASR Dt. 20-2-98 passed by the CCE, Vizag 1-11-90 to 31-3-95 and 24-4-95 to 31-7-95 Duty: 32,75,816Penalty: 6,50,000 Interest u/s 11AB 2. E/1308/98 M/s. Sri Sai Fabrics v. CCE, Vizag O.R. 47/95 Dt. 9-10-95 4/98-ASR Dt: 25-2-98 passed by the CCE, Vizag 1-10-90 to 31-7-95 Duty: 6,42,193 Penalty: 1,30,000 Interest u/s. 11AB 3. E/1310/98 M/s. Venkataramana Printing & Dyeing Works v. CCE, Vizag O.R. 48/95 Dt. 9-10-95 6/98-ASR Dt: 26-2-98 passed by the CCE, Vizag 1-10-90 to 31-7-95 Duty: 2,68,408 Pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that they had made any admissions pertaining to use of power in the manufacturing of these processes. Their contention is two fold. (a) that the Show Cause Notice does not allege wilful suppression of facts with intention to evade duty and, therefore, the invocation of larger period is not sustainable and (b) that when they have not used power for various processes and that the department was aware of their activity, therefore, the question of invoking larger period does not arise for confirming demands. It is their submission that the Commissioner has not given categorical and specific finding that they have used power in the various activities. He has relied on the statement pertaining to the fact of pumping of water to the overhead tan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the benefit of the Notifications are required to be extended to these activities. The learned Counsel submits that there was an amendment to the subsequent period granting the benefit even if power is used. However, for the earlier period, the benefit of Notification was not to be extended if power was used. It is the case of the assessees that power has not been used for the various activities even as per the admitted position from the Show Cause Notice. The power was used only for pumping the water to the overhead tank which cannot be treated as a process of manufacture. Therefore, he submits that the benefit of the Notification cannot be denied and that the demands are barred by time. 3. The learned JCDR contradicts the Counsel's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the machines noted in column no. 5 are installed and put into operation" He submits that in view of the subsequent clarification given by the Inspector of Factories, the conclusion drawn by the Commissioner is not based on any evidence of mahazar drawn by the Inspecting Officers. No mahazar has been drawn with regard to the use of electricity and the said machines were working on electric motors. 5. The learned JCDR submits that in the case of M/s. Shri Dhanalakshmi Cloth Dyeing & Printing Works, there is a letter given by the Factory manager admitting the use of power. In counter, the learned Counsel submits that in case of M/s. Shri Dhanalakshmi Cloth Dyeing & Printing Works, the assessee is seeking relief on the basis of time ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of this fact, the conclusion has to be drawn that electricity has been used for running the machines. In view of this evidence, we have to uphold the findings of the Commissioner with regard to the use of electricity for running the machines and hence, the benefit of Notification has been rightly denied. (ii) In so far as the demands being barred by time, it is seen that for the purpose of invoking larger period, the Show Cause Notice should clearly indicate that there is deliberate suppression of facts with an intention to evade duty as noted by the Apex Court and in the judgments and the gist of orders extracted supra. We have perused the Show Cause Notice and find that the crucial ingredients to invoke larger period has no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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