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2015 (3) TMI 592 - SUPREME COURT

2015 (3) TMI 592 - SUPREME COURT - 2015 (318) E.L.T. 15 (SC) - Extended period of limitation - Suppression of facts - Manufacturing activity or not - Assessee is engaged in the business of cutting larger steel plates into smaller size and shapes as required by the customers - appellant, under the belief that the aforesaid process does not amount to manufacture did not get himself registered - Held that:- Even as per the Department, there were certain doubts relating to excisability of the proces .....

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erving show cause notice shall be six months. In the present case, the show cause notice covered the period from October, 1991, to September, 1996 and the show cause notice was given on 01.11.1996. In the said show cause notice when only a period of six months could be covered from the date of show cause notice, it will go back to period from May, 1996 onwards. - imposition of penalty upon the appellant is unwarranted. - Decided partly in favour of assessee. - Civil Appeal Nos. 6999-7000 of 2003 .....

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tions of law. For the sake of convenience, we shall be eliciting the facts from Civil Appeal Nos. 6999-7000 of 2003. The appellant in this case is running a proprietorship concern which is engaged in the business of cutting larger steel plates into smaller size and shapes as required by the customers. The specification, size, etc., to which the larger size plates are to be cut into smaller sizes are provided by the customers, and the plates are also supplied by them to the appellant. After cutti .....

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stered under the said Act and therefore, was not paying any excise duty on the said produce. After this was detected by the Department, a show cause notice dated 01.11.1996 was issued to the appellant covering the period from October, 1991 to September, 1996. By the said notice, the appellant was called upon to show cause as to why excise duty as well as the penalty etc., be not charged/ imposed on the aforesaid process carried out by the appellant during the said period as according to the Depa .....

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en a hearing and thereafter Order-in-Original dated 11.07.1997 was passed by the Adjudicating Authority confirming the demand of duty raised in the show cause notice. Penalty was also imposed. The objection regarding limitation was rejected by the Adjudicating Authority taking shelter under proviso to Section 11A(1) of the Act holding that it was the case of the suppression and misrepresentation by the appellant and therefore, limitation period stood extended to five years, for initiating action .....

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to demonstrate that the process did not amount to "manufacture", he abandoned the said argument in the middle. His submission now is confined to the aspect of limitation and penalty which has been imposed. In this behalf, his plea was that the case of the appellant is not covered under the proviso to Section 11A(1) of the Act as there was no suppression or misrepresentation on the part of the appellant. In order to buttress this submission, the learned counsel referred to Order-in-Ori .....

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basis, in that case, the penalty was also not imposed. Relevant portion of the said order reads as under: - "However, in computing the total short levy alleged against the unit, their turnover pertaining to mere second sales of M.S. sheets have to be excluded. Turnover pertaining to cutting of M.S. circles and rings and various size profiles will have to be reckoned for calculating their short levy liability. Further in view of the fact that the issue relating to excitability of the proces .....

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