2010 (11) TMI 271

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....e relevant journal voucher, the narration of the transaction was mentioned as amount being transferred towards the value of raw material consumed (310.00 MT Rs. 2390/- PMT.) during trial run material damaged and destroyed due to heavy rains and insurance claim received Rs. 13,78,617/-. It thus appears that the respondents deliberately suppressed the fact of receiving the insurance claim so as to evade payment of duty. Accordingly, the respondents were held liable to pay the duty on the value of sponge iron claim from Insurance Company was recoverable. The Adjudicating Authority confirmed the demand and imposed the penalty but the lower appellate authority dropped the demand. Aggrieved from the said order, Revenue is before me. 3. Th....

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....eedings have been initiated against the respondents on the basis of the information revealed in the balance sheet for the period 2005-06 and the show cause notice has been issued on 18/19-12-2007 which is not disputed by the parties. The contention of the learned Advocate for the respondents is that the show cause notice is barred by limitation which is to be examined first. In the case of Hindalco Industries Ltd. supra, the Tribunal has held that the balance sheet is a public document. Therefore, the allegation that data stated in the balance sheet was suppressed from the Central Excise authorities is not a viable allegation. Accordingly, extended period is not invokable. Further in the case of Martin & Harris Laboratories Ltd., this Tribu....

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....ruti Udyog Ltd. v. CCE, New Delhi reported in 2001 (134) E.L.T. 269 wherein it has been held by the Tribunal that invocation of the extended period of limitation when the assessees did not declare waste and scrap of iron and steel and aluminum and availment of credit thereon either in their classification list or modvat declaration or in the statutory records. The theory of universal knowledge cannot be attributed to the department in the absence of any declaration. Hence it was held the extended period of limitation is invocable. 8. The lower appellate authority has dropped the demand on limitation relying on the decision of Hindalco Industries Ltd. (supra) wherein it was held that balance sheet of the company being a publicly avai....