TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the goods cleared by the appellant from blanks were complete or finished articles amounting to manufacture under Note 6 to Section XVI of the Central Excise Tariff Act, 1985 and liable to central excise duty; (ii) Whether the demand raised by the show cause notice dated 29.09.1993 for the period March 1989 to November 1991 was sustainable under the extended period of limitation.
Issue (i): Whether the goods cleared by the appellant from blanks were complete or finished articles amounting to manufacture under Note 6 to Section XVI of the Central Excise Tariff Act, 1985 and liable to central excise duty.
Analysis: On visual examination of the samples produced, the goods were found to be finished products requiring only further operations by the customer. The goods manufactured from raw material and blanks were held to have the essential character of complete or finished articles. Note 6 to Section XVI deems conversion of an incomplete or unfinished article having the essential character of the complete or finished article, including blanks, into a complete or finished article as manufacture.
Conclusion: The issue is decided against the assessee and in favour of the Revenue. The goods were held to be excisable and duty was held payable, subject to admissible deductions.
Issue (ii): Whether the demand raised by the show cause notice dated 29.09.1993 for the period March 1989 to November 1991 was sustainable under the extended period of limitation.
Analysis: The earlier position accepted by the Tribunal on the same process, machinery and blanks created a bona fide belief that the goods were not excisable. The lower authorities did not dispute that the same items were manufactured in the same manner even after the new tariff regime. In those circumstances, invocation of the extended period was not justified.
Conclusion: The issue is decided in favour of the assessee and against the Revenue. The demand under the show cause notice dated 29.09.1993 was held unsustainable.
Final Conclusion: The duty demand was upheld for the period covered by the timely show cause notice, but the extended-period demand was set aside, resulting in a partial relief to the appellant.
Ratio Decidendi: An unfinished article or blank having the essential character of the finished article is manufacture under Note 6 to Section XVI of the Central Excise Tariff Act, 1985, but the extended period of limitation cannot be invoked where the assessee entertained a bona fide belief supported by an earlier Tribunal view on the same process.
TaxTMI 
