TMI Blog2015 (12) TMI 669X X X X Extracts X X X X X X X X Extracts X X X X ..... pert and it was clarified by the expert that such furniture items were exempt from payment of duty. A specific declaration to this effect was furnished with the Central Excise Department at New Delhi vide letter dated 16.07.1987 about the activity carried out by the assessees and on that basis, it was claimed that the said furniture items supplied by the assessees under the aforesaid contract to M/s. ITC Ltd. were exempt for payment of excise duty. Thus, insofar as the appellants are concerned, they had taken a particular stand in the declaration filed as early as on 16.07.1987 disclosing all relevant facts. However, the Central Excise Department at New Delhi did not take any action thereof. Issuance of show cause notice on 22.10.1996, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. and as per the specifications, drawings and designs supplied by ITC Ltd.. On the basis of an information that M/s Hotel Rajputana Palace Sheraton, a Five Star Deluxe Hotel owned by M/s ITC Ltd., had entered into agreements with different manufactures of furniture for the manufacture of different items of furniture at site on labour contract basis as per the terms, conditions and rates set out in the respective agreements, the Officers of the Central Excise visited Hotel Rajputana on 12.12.1995 and directed the representatives of M/s ITC Ltd. to furnish complete information relating to the manufacture of different items of furniture for use in their premises. M/s ITC Ltd., in response, furnished inter alia the copies of the agreem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd one of the partners namely, Sita Juneja as proprietress was running the business thereafter under the name and style of Sita Juneja Associate . The demand made was resisted by the erstwhile partners in their replies to the notice on various grounds, one of which was that the partnership firm was no more in existence. According to the appellants, there were no provisions in the Central Excise Act or any rules framed thereunder for assessment and demand of duty of excise on a partnership firm after its dissolution and in absence of any such provisions, it was not open to the Department to raise a demand of duty after 05.10.1996. They relied on the decision of Supreme Court in case of State of Punjab v/s Jullundur Vegetables Syndicate [( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consented with the view taken by Member (Technical) The Tribunal vide its order dated 29.08.2007 dismissed the appeal filed by the appellant and partly allowed the appeal filed by M/s Hotel Rajputana Sheraton. The learned Member (Judicial), held that there cannot be a duty demand on the partners jointly and severally for the goods manufactured by M/s. SJA when the same has been dissolved that too when it was not the Department s case that dissolution of the firm was unlawful and not genuine and effected to defraud the Department. It was also held that items in question are not handicraft and not entitled for benefit of Notification No. 76/86 CE though the goods are made pre-dominantly by hand and are covered by the description of other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had taken a specific plea to the effect that they bona fide believed that the manufacture of wooden furniture manually by artisans/craftsmen were wholly exempt from payment of duty under Notification No. 76/86-CE. It was also pleaded that as early as in the year 1986 the assessees had sought opinion from an expert and it was clarified by the expert that such furniture items were exempt from payment of duty. A specific declaration to this effect was furnished with the Central Excise Department at New Delhi vide letter dated 16.07.1987 about the activity carried out by the assessees and on that basis, it was claimed that the said furniture items supplied by the assessees under the aforesaid contract to M/s. ITC Ltd. were exempt for payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
