2001 (10) TMI 347 - AT - Central Excise

Tribunal rules on time limit issue, favoring appellants in Central Excise Act case

The Tribunal ruled in favor of the appellants, finding that the demand of duty was outside the normal time limit specified in Section 11A(1) of the ... Demand - Limitation Issues involved:1. Whether the goods in question are excisable goods liable to duty.2. Whether the appellants are the manufacturers of the goods.3. Whether the demand of duty is within the time limit specified in Section 11A(1) of the Central Excise Act.Analysis:Issue 1: Excisability of the goodsThe appellant argued that the steel structures used in the construction of the shed were fabricated by an independent contractor and not by them, thus no duty should be demanded from them. They cited a case to support their argument. Additionally, they contended that the shed became part of the immovable property and hence not excisable goods. They further referenced various decisions to strengthen their position.Issue 2: Manufacturer status of the appellantsThe Department argued that the appellants are the manufacturers as the work was done by the contractor on a labor job basis. They relied on statements and legal precedents to support their claim that the appellants should be considered as manufacturers.Issue 3: Time limit for demanding dutyThe Tribunal found that the demand of duty was beyond the normal period specified in Section 11A(1) of the Central Excise Act. The Department invoked the extended period due to alleged suppression of material facts by the appellants. However, the Tribunal disagreed, noting that the appellants had informed the Department about the construction of the shed and installation of machinery. They concluded that the extended period of limitation was not applicable in this case, setting aside the impugned order based on the time limit aspect without delving into the merits of the case.In conclusion, the Tribunal ruled in favor of the appellants, holding that the demand of duty was beyond the normal time limit, and the extended period was not applicable as the appellants had not suppressed any material facts from the Department. The judgment emphasized the importance of timely communication and compliance with statutory requirements, ultimately allowing the appeal based on the time limit aspect.