1998 (3) TMI 223

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....es confiscating land and building levying redemption fine of Rs. 5,00,000/-. 2. The Appellants manufacture automobile gears. They were availing of Modvat credit. They have filed a declaration on 27-3-1986 in which they have declared their inputs numbering about 27 items. They had declared forging under Heading 72.08 as an input and steel covered by Heading 72.06-20 of Central Excise Tariff Act, 1985. They had also declared, among other items, at Serial No. 27 of their declaration anti-rust and anti-corrosion preparation. Proceedings were initiated against the Appellants by issue of show cause notice on 23-3-1992 for the period 1-4-1987 to 28-2-1991 invoking the longer period under Rule 57-I of the Central Excise Rules. The charges w....

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....sel for the Appellant Shri Ravindran submitted that the demand is hit by limitation because the charge of non-declaration of the input is contradicted by Commissioner's own finding in the inpugned order that he has perused the copy of the declaration filed by the Appellants, and that except input 'Parker-55' all the products have been declared by the Appellants in their declaration dated 27-3-1986 and 13-8-1986. It was also contended that the departmental audit representatives have checked their Modvat account from time to time during the material period and have issued suitable instructions to the Appellants which also goes to prove that there was no suppression of facts by them. Reliance was placed on the Tribunal decision in the case of ....

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....eading which the department thought was the applicable heading to each of the material on which deemed credit has been wrongly taken by the Appellants. Therefore, there was no new case made out in the inpugned order. The deemed credit has been demanded on material like Rods, Bars, which were not declared at all whereas a general declaration like "steel", "forging" has only been made the delivery challans which were filed with the RT-12 returns were not supplied to the department but taken deemed Modvat credit on undeclared input. 6. We have carefully considered these submissions. We find that so far as the material 'Parker-55' is concerned the description given in their declaration dated 27-3-1986 covers anti-corrosion preparation. ....