1997 (11) TMI 251

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.... Shri S. Nunthuk, JHDR, for the Respondent. [Order per : Shiben K. Dhar, Member (T)]. - Appellants are engaged in the manufacture of Steam Boilers which were classified under Tariff Item 68 upto 1-3-1986 and thereafter under chapter heading 84 of the new Tariff. Consequent on investigation carried out by the Central Excise Officers it was held; that the appellants have evaded duty to the ....

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.... of Rs. 10,000/- on the appellants. 2. Arguing on behalf of the Appellants the ld. Counsel submits that he does not wish to go into the merits of the case as such but would confine his arguments only to the question of limitation and imposition of penalty. He drew attention to the Para 3 of the Collector's order at internal page 18 of the order according to which Collector himself held tha....

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.... enable the department to arrive at a correct determination in time. 4. We have heard both sides. We are extracting below paragraph 3 of the observation at internal page 18 of the Collector's order. "From discussion and evidence on record no intention of evasion of duty is proved. It is their understanding that by arrangements made by them separate exemption can be availed. I, therefore....

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....he other hand it should have been with intention to evade payment of duty. Both must concur to enable the Excise Officer to proceed under his proviso and invoke the exceptional power. Since the proviso extends; the period of limitation from six months to five years it has to be construed strictly. The initial burden is on the Department to prove that the situation visualised by the proviso existed....