2008 (3) TMI 573

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....larger period to demand duty due on bushes manufactured and consumed by the appellant in the manufacture of PD pumps. Equal penalty is also imposed. During the material period, namely, 2-6-98 to 28-2-02, all parts of P.D. pump manufactured and captively used in the manufacture of pumps were exempt from payment of duty except a couple of items such as bearings and winding wires in terms of Notification No. 5/98-C.E. dated 2-6-98. The same exemption existed since 1984 under different Notifications and continues under successor notifications. The impugned order is passed on the ground that the appellant had availed the exemption by misdeclaring the description of the impugned goods as Top bearing bush, Bottom bearing bush, Motor top bush etc. ....

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....eriod. The impugned order was passed pursuant to a notice issued on 26-6-03. Therefore the entire demand was barred by limitation. A plethora of judicial authorities were cited in support of the claim that demands contrary to an approved classification could not be raised invoking larger period. 3. The ld. SDR submits that the impugned goods are bearings and cites the decision of the Tribunal in [2003 (154) E.L.T. 480 (Tri.-Mumbai)] (supra) in support. She reiterates the reasoning contained in the impugned order. 4. We have carefully considered the case records and submissions made by both sides. from the case law submitted by the Counsel as well as the SDR, it is not clear beyond doubt if those decisions dealt with the impu....

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.... Commissioner has reclassified bush bearing, bearing sleeves and plain shaft bearing under CSH 84.83 instead of CSH 73.07 and ordered recovery of the exemption availed in respect of these goods capitvely consumed during the period 2-6-98 to 28-2-03. An amount of Rs. 54,48,363/- has been demanded towards duty due, appropriate interest and equal amount of penalty. Duty due on clearances of bearing bush and bearing sleeve confirmed after due process of law, for an intermediate period in the material period is excluded from the impugned demand. The impugned demand has been made solely on the basis of the ratio of the Tribunal's decision in CCE v. KSB Pumps Ltd., repotted in 2003 (154) E.L.T. 480 (Tri.-Mum.). We find that in the above order, the....