Custom, Excise & Service Tax Tribunal
M/S Ramco International (Unit-Ii) vs Cce, Ludhiana on 23 December, 2016
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SCO 147-148, SECTOR 17-C, CHANDIGARH-160017 COURT NO.1 APPEAL NO. E/585/2010 [Arising out of the OIA No. 269/CE/Ldh/09 dated 31.12.2009, passed by the Commissioner, Custom & Central Excise (Appeals), Chandigarh] Date of hearing/decision: 23.12.2016 For approval and signature: Honble Mr. Ashok Jindal, Member (Judicial) =======================================================
M/s Ramco International (Unit-II) :
Appellant(s) VS CCE, Ludhiana :
Respondent(s) ======================================================= Appearance:
Sh. Sudhir Malhotra, Advocate for the Appellant(s) Sh. V.K. Tehran, A.R. for the Respondent(s) CORAM:
Honble Mr. Ashok Jindal, Member (Judicial) FINAL ORDER NO. 61818/2016 PER: ASHOK JINDAL The appellant is in appeal against the impugned order.
2. The facts of the case are that the appellant was manufacturing Garden Tools & Articles of Iron & Steels vide Notification No. 23/2004 Central Excise dated 09.07.2004. The Garden Tools were fully exempted from payment of duty. The appellant cleared waste and scrap arising during the manufacturing of Garden Tolls during the period of July, 2004 to December, 2004 without payment of duty. As waste and scrap arising during the course of manufacturing of goods is exempted from the whole of duty in terms of Notification No. 89/95 CE but the appellant is required to pay duty on these wastes and scrape. In these terms, a show cause notice issued to the appellant to demand duty on clearance of waste and scrap during the said period. The matter was adjudicated, the demand of duty was confirmed along with interest and equivalent amount of penalty was also imposed. Aggrieved from the said order, appellant is before me.
3. The Ld. Counsel for the appellant appeared and submits that as the clearance of waste and scrap was in the knowledge of Revenue through periodic Returns i.e. RT-12/ER-1 filed by the appellant during the relevant period regularly. Therefore, a show cause notice dated 15.01.2008 is barred by limitation as same has been issued by invoking the extended period of limitation.
4. Heard the parties and considered the submissions.
5. On examining the show cause notice it has been admitted in the show cause notice that the appellant has shown clearance of waste and scrap in RT-12 returns during the impugned period i.e. July, 2004 to December, 2004. As the fact of clearance of the waste and scrap without payment of duty was in the knowledge of Revenue, therefore, show cause notice dated 15.01.2008 was issued is barred by limitation. In these circumstances, demand against the appellant is not sustainable as being time barred. The impugned order is set aside.
Appeal is allowed with consequential relief if any.
(Dictated and pronounced in the open court) Ashok Jindal Member (Judicial) NS 1 Appeal Nos. E/585/2010- chd