1999 (10) TMI 403 - AT - Central Excise

Tribunal grants appeal by M/s. Mahindra & Mahindra Ltd., setting aside duty demand due to exemption

The appeal filed by M/s. Mahindra & Mahindra Ltd. was allowed by the Tribunal. The duty demand of Rs. 4,77,986/- was set aside as the goods were ... Demand - Limitation Issues involved:The appeal filed by M/s. Mahindra & Mahindra Ltd. questions the availability of benefit u/s Notification No. 118/75-C.E., dated 30-4-1975 and 72/82-C.E., dated 1-3-1983 due to non-claim and non-following of Central Excise Rules procedures.Central Excise Duty Demand:The Collector confirmed a duty demand of Rs. 4,77,986/- on the Appellants for not following Central Excise procedures and not complying with Notification conditions. The Appellants argued that the goods were exempted under Notifications 72/83 and 118/75, and the non-compliance was a procedural lapse, citing relevant case law.Time Barred Demand:The Appellants contended that the demand was time-barred as they believed in good faith that the goods were covered by the aforementioned Notifications. They referenced cases where non-imposition of penalties limited the time for duty demand.Benefit of Exemption Notification:The Respondent argued that the Appellants did not fulfill the conditions specified in the Notifications, such as obtaining necessary licenses and certificates, hence the exemption from duty was not applicable. They cited a case where non-compliance with Chapter X procedures led to denial of notification benefits.Judgment:The Tribunal noted that the goods were indeed exempted from duty and transferred to other units, but the Appellants failed to file classification lists or follow Chapter X procedures. The extended period of limitation for duty demand was deemed inapplicable as there was no willful suppression of facts, given the goods' exemption status. The appeal was allowed based on the time limit issue, without delving into other aspects.