1993 (5) TMI 90 - AT - Central Excise

Tribunal Upholds Extension of Time Decision in Appeals Case

The Tribunal dismissed the Appeals, upholding the adjudicating officer's decision to grant an extension of time for the show cause notice. It found the ... Adjudication - Seizure of goods Issues:Stay of operation of order, Extension of time for show cause notice, Allegation of coercion and threat in reply, Adequacy of investigation period, Waiver of personal hearing, Justification for extension of time, Requirement of relevant documents for investigation.Analysis:The judgment dealt with the Stay Petitions filed by the appellants requesting the operation of the order be stayed during the pendency of the Appeals. Since no deposit of duty or penalty was involved, the Appeals themselves were taken up for hearing, rendering the Stay Petitions infructuous. The Appeals arose from the seizure of goods manufactured at a specific location by the appellants, with the department alleging they were manufactured on behalf of another entity. The department issued a Notice under the Customs Act, 1962, seeking objections to the proposed extension of time for issuing a show cause notice beyond the statutory period. The appellants initially consented to the extension but later retracted, alleging coercion and threat.The appellants contended that the investigating officers failed to complete the investigation within the statutory period, and the time given for personal appearance was inadequate, challenging the extension granted by the adjudicating officer. The department argued that the appellants had initially waived personal hearing and consented to the extension. The Tribunal considered these submissions and determined whether the extension granted was justified. It noted that the appellants had waived personal hearing initially, and their subsequent retraction lacked substantial evidence of coercion or threat.The Tribunal cited a Supreme Court decision emphasizing that a retracted statement does not necessarily indicate coercion, requiring the maker to prove inducement or threat. In this case, the appellants failed to substantiate their claim of coercion. The Tribunal further analyzed the order passed by the adjudicating officer, concluding that the officer had considered the submissions and justifications provided by the appellants. The officer's decision to grant the extension was deemed reasonable, considering the ongoing investigation and the need for additional documents from the appellants. The Tribunal referenced another Supreme Court decision emphasizing the seriousness of investigations and the need for confidentiality until completion.Ultimately, the Tribunal dismissed the Appeals, finding that the adjudicating officer had applied his mind and reached a justifiable conclusion regarding the extension of time for the show cause notice. The order was deemed speaking, as it reflected the officer's consideration of the case facts and requirements for further investigation. The Tribunal upheld the officer's decision, emphasizing the importance of completing investigations thoroughly and the officer's discretion in determining the necessity of additional documents.