1988 (4) TMI 183

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....re a small scale manufacturer of printing inks, hot melts, reducers and retarders falling under Tl 68 and Varnishes falling under 14-II(i) of CET. The period in dispute originally related to 1-4-1979 to 5-9-1979. Printing inks and hot melts falling under Item 68 were exempt from payment of the whole of the duty under Notification No. 89/79-C.E., dated 1-3-1979. Reducers and retarders falling under Item 68 were made without the aid of power and were thus exempt from payment of duty under Notification No. 179/77, dated 18-6-1977. Notification No. 71/78-C.E., dated 1-3-1978 under which the appellants claim exemption in respect of Varnishes exemption is granted in respect of the first clearances of excisable goods as specified in the notificati....

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....1) Whether for the purpose of the Notification No. 71/78, dated 1-3-1978 goods other than those specified in the notification cease to be excisable on being exempted by notification issued under Rule 8(1) of Central Excise Rules, 1944 (2) Whether shorter limitation of six months should be computed from 5-3-1980 when demand quantifying the amount was served on the appellant or it should be computed from 17-12-1979 as done by the lower authorities. (3) Whether in judging the eligibility of the appellants to benefit of exemption under the notification in the light of exemption Notification No. 141/79-C.E., dated 30-3-1979 retrospective effect is given to the amended notification. 5. Taking up the first point for determination it may b....

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....he Collector (Appeals) has allowed benefit of shorter limitation of six months to the appellants computed from 17-12-1979 i.e., the date of show cause notice. Appellants, however, contend that the demand was in fact raised on 5-3-1980 and six months limitation should be computed from this date. It Is noticed that this demand was raised after the Assistant Collector had taken decision by order, dated 23-5-1981 on appellants classification list. This order refers to show cause notice, dated 17-12-1979 calling upon the appellants why exemption claimed under Notification No. 71/78, dated 1-3-1978 should not be disallowed and clearance from 1-4-1979 effected without payment of duty be subject to excise duty 15% ad valorem. It is not suggested th....