TMI Blog2008 (8) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... ification of physical stock of grey of finished fabrics and on comparison of the same with the recorded balance, certain shortages were detected. Statement of the Director was recorded, who admitted the said shortages and deposed that they were cleared illicitly without central excise invoices and without payment of duty. The statements of Merchant Manufacturers were also recorded subsequently, who admitted having sent the grey fabrics for processing and having received the final product without payment of duty. 2. On the above basis, show cause notice was issued on 9-5-05 proposing confirmation of demand of duty of Rs. 4,01,693/- and for imposition of penalty of equivalent amount. The notice culminated into an order passed by the origina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired to be held as barred by limitation. Reference in this regard is made to the Tribunal decision in the case of Lovely Food Industries v. C.C.E., Cochin - 2006 (195) E.L.T. 90 laying down that notice issued after a lapse of three months when the Department gathered all information on their visit to factory and records were seized and statements were recorded on the same day is barred by limitation. Similarly, in the case of Decent Enterprises v. C.C.E., Hyderabad - 2006 (73) RLT 262 (CESTAT- Bang.), the notice issued on 7-1-04 in respect of shortage detected on 18-1-1999 was held as barred by limitation. The Tribunal in the case of Jetex Carburrettors Pvt. Ltd. v. C.C.E., Vadodara - 2007 (210) E.L.T. 73 (Tri.) = 2007 (5) S.T.R. 446 (Tri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the case of Mathania Fabrics relied upon by the learned DR is not applicable to the facts and circumstances of the case, inasmuch as the Hon ble Supreme Court observed that 5 years period is to be reckoned from the date of issue of show cause notice when there was admitted suppression. No legal issue as to whether the same is required to be issued within six months period of knowledge of the Department and visit of the officers in the factory and completion of investigation, was involved in the above case. As such, I am of the view of that appeals are required to be allowed on the above issue itself. The impugned order is set aside and both the appeals are allowed with consequential relief to the appellants. (Pronounced in the open C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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