1987 (4) TMI 339 - AT - Central Excise

Customs Tribunal Upholds Duty Demand Decision, Applies Section 11A Limitation

The Tribunal dismissed the appeal as the appellant did not contest the classification issue, and the duty demand was pending determination by the ... Demand - Time limit Issues:Classification of goods under Tariff Item 68 or Item 52 of Central Excise Tariff, Finality of Assistant Collector's order, Duty liability retrospectively, Quasi-judicial nature of Assistant Collector's order, Applicability of Section 11A of the Central Excises and Salt Act, Limitation period for duty demand.Analysis:1. Classification of Goods: The appeal concerns the classification of nuts and bolts manufactured by the appellants under Tariff Item 68 or Item 52 of the Central Excise Tariff. The appellant conceded that the goods fall under Tariff Item 52, based on a ruling from a previous case. The appeal does not press this issue further.2. Finality of Assistant Collector's Order: The Assistant Collector of Central Excise, Ludhiana, in an order dated 3-10-1973, held that the nuts and bolts manufactured by the appellants are not excisable. The appellant argued that this order had reached finality as it was not reviewed or modified as per law. The Collector of Central Excise, Chandigarh, later found the goods classifiable under Tariff Item 52, leading to a retrospective demand for duty. The Tribunal held that the Assistant Collector's order was quasi-judicial and had finality, preventing retrospective modifications.3. Quasi-Judicial Nature of Order: The Tribunal determined that the Assistant Collector's order was quasi-judicial and had attained finality since it was not revised or modified as per legal procedures. As such, any duty liability based on the classification of goods could only be imposed prospectively from the date of the original order and not retrospectively.4. Applicability of Section 11A: The Tribunal discussed the applicability of Section 11A of the Central Excises and Salt Act, which governs the limitation period for raising duty demands. The judgment referred to a previous case to support the view that reassessment of goods would be subject to the limitation provisions of Section 11A.5. Limitation Period for Duty Demand: The Tribunal concluded that any change in classification would be applicable six months preceding the date of the show cause notice issued by the Department. The duty demand could only be enforced for this limited period, not for the entire duration since the imposition of Central Excise duty on the goods in question.6. Dismissal of Appeal: The Tribunal ultimately dismissed the appeal as the appellant did not contest the classification issue and the duty demand was left pending for determination by the Assistant Collector of Customs, Ludhiana. The dismissal was in line with the decision not to press the classification question and the unresolved duty demand issue.This detailed analysis covers the various legal issues addressed in the judgment, including the classification of goods, finality of orders, duty liability, quasi-judicial nature of decisions, applicability of statutory provisions, and limitation periods for duty demands.