TMI Blog2023 (3) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... ts which have been manufactured using electricity and in such circumstances they ought to have obtained registration and paid excise duty. That therefore the respondents have suppressed facts - there are no substance in the argument put forward by the learned AR or in the grounds put forward in the appeals filed by the department. Interpretation of the notification - HELD THAT:- There were decisions in favour of the assessee as well as the Revenue. The Commissioner (Appeals), Tirunelveli vide Order-in-Appeal dated 28.4.2005 has referred to Board Notification NO. 1/93-CX-4 dated 2.12.1993 wherein Board clarified that In the present case parts are manufactured by a manufacturer with the aid of power. Such parts manufactured with the aid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achalam, Advocate for the Respondents ORDER The above appeals are filed against the orders passed by Commissioner who set aside the demand of duty on the ground that the Show Cause Notices issued are time-barred. 2. Brief facts are that the respondents are manufacturers of safety matches falling under Chapter 36 of the First Schedule to CETA, 1985. Upon investigation, it was noticed that the respondents procured chemical dipped match splints in bulk from mechanized match manufacturers like Saraswathi Match Industries, Peraiyur and We Two Match Industries, Sivakasi. These dipped match splints procured by them were packed in veneer or cardboard match boxes of 50 sticks each and affixed labels, packed again into bundles and sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strips, the configuration of a match box including the outer slide or the inner slide, or b. The veneer flats or strips, the configuration of a match box including the outer slide or the inner slide with the use of match paper (ii) Frame filling (iii) Dipping of splints in the composition for match heads (iv) Filling of boxes with matches (v) pasting of labels on match boxes of veneers or cardboards and (vi) packings 4. Learned AR stressed that it is admitted by the respondents that the dipping of splints has been carried out with the aid of power. In other words, the respondents have purchased dipped match splints from manufacturers / suppliers who have manufactured the dipped splints with the aid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey were not using any power, they are eligible for the exemption of the notification. There was no suppression of facts and all the details were known to the department. In fact, the department had raised the issue as early as in 2005 when demand for payment of duty was made against Subathira Match Industries. The said match industry filed W.P. No. 771/2005 before the Hon'ble High Court of Madras. The writ petition was disposed with a direction to the assessee to file an appeal before the appropriate authority. They filed an appeal before the Commissioner (Appeals) and vide Order-in-Appeal No. 56/2005 dated 28.4.2005, the Commissioner (Appeals) held that they are eligible for exemption as per Notification No.6/2002-CE dated 1.3.2002. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issa Bridge and Construction Corpn. Ltd. Vs. CCE, Bhubaneshwar reported in 2011 (264) ELT 14 (SC) was relied by the learned counsel to argue that when the department was aware of the facts, the Show Cause Notice issued after two years alleging misplacement of file cannot sustain. The decision in the case of Ispat Industries Ltd. Vs. CCE, Raigad reported in 2006 (199) ELT 509 (Tri. Mum.) was relied to argue that extended period cannot be invoked merely because the assessee did not interpret the provisions of law in the way department sought to interpret. The decision of the Hon'ble Supreme Court in the case of Padmini Products Vs. Collector of Central Excise reported in 1989 (43) ELT 195 (SC) was relied to argue that mere failure or negl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell as the Revenue. The Commissioner (Appeals), Tirunelveli vide Order-in-Appeal dated 28.4.2005 has referred to Board Notification NO. 1/93-CX-4 dated 2.12.1993 wherein Board clarified as under:- In the present case parts are manufactured by a manufacturer with the aid of power. Such parts manufactured with the aid of power are purchased by another manufacturer of footwear who used such parts for manufacture of foot wear without the aid of power. So long as the second manufacturer does not use any power, in or in relation to manufacture of foot wear either in his factory or in the factory of his job workers, it cannot be construed that power has been used in the manufacture of foot wear only because the raw materials bought and used by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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