Appellant's plea rejected on limitation grounds; penalty deleted; appeal dismissed with no costs.

The Tribunal upheld the rejection of the appellant's plea on limitation, citing suppression of material facts by not filing a required declaration and using another's brand name. The penalty was deleted, following precedent. The appeal was dismissed with no costs, with substantial questions of law answered against the appellant.

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Issues Involved:
1. Rejection of the appellant's plea on limitation.
2. Applicability of the extended period of limitation.
3. Scope of the impugned order vis-à-vis the Show Cause Notice.
4. Consideration of the appellant's submissions regarding decisions favoring them on similar issues.

Detailed Analysis:

1. Rejection of the Appellant's Plea on Limitation:
The appellant argued that the CESTAT's order rejecting their plea on limitation was unsustainable due to hostile discrimination, as similar issues were previously decided in their favor. The Department issued a show cause notice on 09.08.2000, alleging that the appellant manufactured and cleared excisable goods with the brand name 'Cansoft' without paying excise duty or following excise procedures. The appellant contended that they did not manufacture goods with another's brand name and that the burden of proof lay with the Department, which was not discharged. They also argued that the demand was time-barred as there was no suppression of information with intent to evade duty. The Adjudicating Authority, however, rejected these contentions, confirming the demand and stating that the appellant had suppressed information, thus justifying the invocation of the extended period under Section 11A of the Central Excise Act.

2. Applicability of the Extended Period of Limitation:
The appellant contended that the extended period of limitation was not applicable, referencing the case of Micro Chem Products (India) Pvt. Ltd. The Tribunal initially allowed the appeal on the merits but remanded the matter to the lower Appellate Authority to decide on the limitation issue. The lower Appellate Authority upheld the Adjudicating Authority's order, stating that the extended period was rightly invoked due to the appellant's failure to file the required declaration and their suppression of information. The Tribunal affirmed this decision, stating that the appellant's failure to disclose the use of another's brand name justified the extended period of limitation.

3. Scope of the Impugned Order vis-à-vis the Show Cause Notice:
The appellant argued that the Tribunal's order was outside the scope of the Show Cause Notice, as it was based on grounds not raised in the notice. The Department maintained that the appellant was required to file a declaration under notification No.22/98, which they failed to do, thus justifying the invocation of the extended period. The Tribunal's decision was found to be within the scope of the Show Cause Notice as the appellant had not disclosed the use of another's brand name, which was a material fact relevant to the case.

4. Consideration of the Appellant's Submissions Regarding Decisions Favoring Them on Similar Issues:
The appellant claimed discrimination, stating that similar cases, such as M/S. Data Tech Systems, were decided in favor of the appellants. They also cited the Supreme Court's decision in Pushpam Pharmaceuticals Company, arguing that there was no suppression of information. However, the Tribunal distinguished these cases, noting that the appellant had not filed the required declaration and had used another's brand name, which justified the invocation of the extended period. The Tribunal's decision was also supported by the Supreme Court's ruling in Commissioner of Central Excise, Trichy v. Grasim Industries Ltd., which held that using another's brand name disqualified the appellant from claiming exemption.

Conclusion:
The Tribunal's decision to invoke the extended period of limitation was upheld, as the appellant had suppressed material facts by not filing the required declaration and using another's brand name. The penalty imposed on the appellant was deleted, following the Supreme Court's observations in Grasim Industries. The substantial questions of law were answered against the appellant, and the appeal was dismissed with no costs.

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