2015 (12) TMI 669

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....rief are that on 13.1.1992,M/s Sita Juneja & Associates (hereinafter referred as M/s SJA), was awarded a contract by M/s ITC Ltd. to make different items of furniture for a Five Star Hotel at Jaipur, known as Hotel Rajputana Palace Sheraton. The work was to be done on labour contract basis and as per the drawings and specifications supplied by M/s ITC Ltd. all the materials for the work were supplied by M/s ITC Ltd. and any wastage thereof was to the contractor's accounts. The work was executed by M/s SJA through sub-contractors in 1992-93, with the raw material supplied by ITC Ltd. and as per the specifications, drawings and designs supplied by ITC Ltd.. On the basis of an information that M/s Hotel Rajputana Palace Sheraton, a Five Star....

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....extended period as per the proviso to Section 11A(1) of the Act. The said show cause notice proposed to demand the amount comprising of cost of raw materials, job-charges paid to M/s. SJA, plus drawings and design charges for the furniture items on the ground that the same should be treated as the assessable value of furniture supplied to ITC hotels at Hotel Raputana Palace. The show cause notice also proposed to impose penalty on M/s. SJA and appellant herein (one of the partners of M/s. SJA). Appellant's case is that the firm had been dissolved on 05.10.1996 and one of the partners namely, Sita Juneja as proprietress was running the business thereafter under the name and style of "Sita Juneja & Associate". The demand made was resiste....

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....he order by filing their separate appeals before Tribunal. Both the appeals were clubbed together. The main issue raised by the appellant herein was whether after the dissolution of the firm, any goods manufactured by M/s SJA could validly be assessed to duty in their names and whether any demand of such duty could be raised on them under the Act and the relevant rules framed thereunder. The Member (Technical) and Member (Judicial) of the Tribunal differed with each other and the matter was referred to before the President and the President consented with the view taken by Member (Technical) The Tribunal vide its order dated 29.08.2007 dismissed the appeal filed by the appellant and partly allowed the appeal filed by M/s Hotel Rajputana Sh....

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....on the same issue decided in the case of Gopal Industries vs. CCE and agreed with Member (Technical). Hence, these appeals. After hearing the learned counsel for the parties, we are of the opinion that the appeals warrant to be allowed solely on the ground that the show cause notice issued was beyond the period of limitation and extended period of limitation as per the proviso to Section 11A(1) of the Act invoked by the Department was impermissible in the facts of the present cases. We may note in this behalf that the assessees had taken a specific plea to the effect that they bona fide believed that the manufacture of wooden furniture manually by artisans/craftsmen were wholly exempt from payment of duty under Notification No. 76/86-CE. I....