TMI Blog2017 (6) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ished goods. Therefore, the duty liability on the finished products have attained finality as per the order of the Settlement Commission dated 6.9.2007 - the department was all through aware of the SCN as well as the proceeding pending with regard to the demand of duty on the finished goods. In spite of that, there has been a delay of seven years in issuing the SCN demanding duty on inputs as well as capital goods. Extended period of limitation - Held that: - Since it is a continuous one, the time limit/limitation cannot be applied in the present case cannot be accepted for the reason that the department would very well have covered the same issue regarding the demand of duty on inputs/capital goods in the SCN issued for demanding duty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e availing exemption under Notification No.1/95-CE invoking section 59 of the Customs Act, 1962 and Rule 196 of the Central Excise Rules, 1944. After due process of law, the adjudicating Commissioner confirmed the duty liability along with interest and imposed penalties. Being aggrieved, the appellant is now before the Tribunal. 2. On behalf of the appellant, learned counsel Sh.N.Viswanathan submitted that the appellant had admitted the duty liability on the finished goods before the Settlement Commission and had discharged the duty on the finished goods. It is seen from the show cause notice that the raw materials as well as the capital goods on which duty has been now demanded are the same raw materials and goods which have been used b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable. 4. We have heard both sides. The issue that poses for consideration is whether the raw materials/capital goods used for manufacture of finished products have been subjected to duty as per the order of the Settlement Commission are liable to duty or not. On perusal of the records, it is seen that the raw materials as well as capital goods which form part of the Annexure to the show cause notice are the same inputs as well as capital goods which have been used in the manufacture of finished goods. Admittedly, the said finished products have been subjected to duty by the order passed by the Settlement Commission. As ordained in section 32M of the Central Excise Act, 1944, every order of settlement shall be conclusive as to the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mport Policy and subject to such other limitations and conditions as may be specified in this behalf by the said Board or the said Committee, as the case may be, on payment of appropriate duty of excise : Provided that goods which have been repaired, reconditioned or reengineered shall not be allowed to be cleared outside the user industry. 6. Without prejudice to any other provisions contained in this notification, where it is shown to the satisfaction of the Assistant Collector that user industry has been permitted to clear any of the said goods for being taken outside to any other place in India by the said Board or the said Committee, as the case may be, in accordance with the Export-Import Policy - (a) such clearance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission dated 6.9.2007. Taking note of these facts, we are of the opinion that the department was all through aware of the show cause notice as well as the proceeding pending with regard to the demand of duty on the finished goods. In spite of that, there has been a delay of seven years in issuing the show cause notice demanding duty on inputs as well as capital goods. The contention raised by Revenue that since it is a continuous one, the time limit / limitation cannot be applied in the present case cannot be accepted for the reason that the department would very well have covered the same issue regarding the demand of duty on inputs / capital goods in the show cause notice issued for demanding duty on finished goods. Therefore, we find th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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