Customs, Excise and Gold Tribunal - Delhi
Tansi Furniture Works vs Commissioner Of Central Excise on 5 June, 1997
Equivalent citations: 1997(93)ELT810(TRI-DEL)
ORDER G.A. Brahma Deva, Member (J)
1. In the instant case the show cause notice-cum-demand dated 4-1-1988 was issued raising the demand of Rs. 11,4357- for the period 1-7-1987 and 15-11-1987. Show cause notice was issued of proposing to change the classification. In the circumstances whether demand can be raised from the date of show cause notice or from six months prior to the date of show cause notice is the issue to be considered in this case. It was the contention of the party that demand can be raised only from the date of issue of show cause notice and not earlier. According to department demand can be raised even six months prior to the issue of show cause notice.
2. When the matter was posted for hearing none-appeared on behalf of the appellants. However, there was a request from them to decide the case on merits. Accordingly, we proceed to pass this order after hearing Shri M. Haja Mohideen, learned JDR.
3. We find that the issue involved in this case has been covered by the ratio of the latest decision of the Supreme Court in the case of Collector of Central Excise, New Delhi v. Bhiwani Textile Mills, reported in 1996 (17) RLT 1126 (S.C.). In that case following the earlier decision in the case of Union of India and Ors. v. Madhumilan Syntex Pvt. Ltd., reported in 1988 (35) E.L.T. 349, it was held that the demand can be raised from the date of show cause notice proposing revision of classification and not for earlier period. Respectfully, following the ratio of the decision of the Apex Court, we accept the contention of the party and in the result, appeal is allowed.