TaxTMI 
TaxTMI 
1996 (4) TMI 308
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....ed on the appellants. 2. The learned Counsel for the appellants pleaded that the demand is for the period from 1989-90 and 1990-91. Show cause notice was issued for demand of duty beyond the period of six months invoking the longer period of limitation. He pleaded that there was no suppression on the part of the appellants with intent to evade payment of duty. He pleaded that the appellants had two units, one at Bangalore and the other in Mandya. The goods manufactured in the units are cement coated steel pipes. He pleaded that the goods were required to be supplied to the Bangalore Water Supply and Sewerage Board (hereinafter referred to as BWSSB). He pleaded that the appellants had filed classification list for the goods in respec....
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....e surity of BWSSB to the effect that BWSSB will sort out the issue regarding payment of Excise duty and when it is finally decided so leviable BWSSB, can make payment to avoid hampering of progress of works at this stage. He pleaded that in this background, the question of supp ression of fact with intent to evade payment of duty does not arise. He pleaded that in the show cause notice, the allegation is that the appellants are not eligible for the benefit of Notification No. 175/86 in respect of the goods manufactured and cleared from their Bangalore factory taking into consideration the value of clearances of the excisable goods manufactured and cleared during the said period from the other unit at Mandya and fu....
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....the sides. We observe that the short point that falls for consideration is whether the appellants can be held to be guilty of suppression of fact in regard to their manufacture and clearances of the goods from their other unit at Mandya with intent to evade payment of duty. We have perused the classification list dated 1-4-1989 and 17-4-1989. We observe from the classification list dated 1-4-1989 bearing No. 42/89 the following entry has been made at S1. No. 5. We have proprietary interest in the following units which manufactures excisable goods : i. Khoday Distilleries Limited (Electronic Division) ii. Fusel Oil a By-product of Khoday Distilleries Limited We observe that the appellants had not come on record when the....
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....reement with the Central Excise Department with the surety of BWSSB to the effect that BWSSB will sort out the issue regarding payment of Excise duty when it is finally decided as leviable and they can make payment to avoid hampering of progress of work. There is nothing in these minutes about their clearances from the unit at Mandya and that they had claimed benefit of Notification No. 175/86 in spite of these clearances. General discussion in the meeting where the issue was only in relation to payment of duty or otherwise, of Pipes. manufactured at Mandya cannot be taken to be in the context of their availing the benefit of Notification No. 175/86. The appellants in such situation are required to come on record before the authorities in r....