2000 (8) TMI 905

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....n respect of Phenol, H.P. Naphthalene, Extra Hard Pitch, Wash Oil, Sulphuric Acid, Benzene and Cresylic Acid. 2. A show cause notice, demanding duty on the shortage reported, dated 4-3-92 was thereafter issued to them, as no valid explanation was given by them for the discrepancies/shortages which were alleged to be due to clandestine removals. 3. The appellants appeared before the Collector and contested, inter alia, the demand to be barred by limitation. The Collector held that the appellants had suppresesd from the department the actual quantity of exigible goods manufactured and cleared, the same without determining their duty liability and he confirmed the demand of Rs. 10,27,881.00 and also imposed a penalty of Rs. 75,....

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....Shri B.J. Mookherjee, Advocate for the appellants and Shri J.M. Kennedy, JDR for the Department who reiterated the grounds in the appeal and the order impugned. 6. We have considered the matter and we find longer time period under Section 11A(1) is inapplicable in the facts of this case as it is not very technically a case under Rule 223A inasmuch as the shortages of exigible goods have not been ascertained in the presence of the proper officer. The appellants sent an intimation of shortages observed by them by their own in-house mechanisms, in their letter dated 10-5-1989. The show cause notice dated 4-3-92 is delightfully silent and vague as to what happened to this self-confessed shortages letter dated 10-5-89 during its hibernat....

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....ination of demand as made by the Collector is required to be set aside, being premature. 6(iii) From the order portion of the impugned order it is observed that the Collector has after confirming a demand of Rs. 10,93,435/- further ordered - (a)  Action should be initiated for recovery of duty on 7 MT of H.P. Napthalene by the Asstt. Collector/Range Officer. (b)     In respect of Extra Hard Pitch appropriate action should be initiated to recover duty pertaining to 1986-87 and 1988-89. Therefore, the determination of demand as determined under Section 11A(2) is not complete in the present case and therefore, the order needs to be set aside. 6(iv)  The payment of duty on 'Phenol' for the perio....