2018 (3) TMI 346

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....4.3.2005 and obtained no objection from the Development Commissioner on 9.3.2005. They obtained final exit order from the Development Commissioner dated 17.5.2005. The officers attached to internal audit department, later noticed that the appellants had not included certain item in the list of machineries / capital goods furnished at the time of debonding on 4..3.2005. Certain items such as accessories used as capital goods namely HDPE Card Cans, Simplex Bobbins, PC Ring Tubes and HDPE Cans procured duty-free under the cover of CT3 on which central excise duty was not paid at the time of debonding was actually required to be included by the appellant to discharge the duty liability at the time of exit. On intimation, the appellant had paid ....

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.... canes, PP simplex bobbins and tubes on which the demand has demand duty as capital goods was stated to be unusable scrap and the appellant was requested to pay appropriate duty on the scrap value of such goods. The appellant accordingly discharged duty liability on the scrap value. Thereafter show cause notice has been issued on 29.7.2008 stating that these items are capital goods and that the appellant has to discharge a higher amount of duty. She submitted that when the department itself had intimated that the items are scrap and the appellant has to pay on scrap value of goods, they cannot change their stand while issuing show cause notice. Further, the show cause notice issued after more than a year of debonding is barred by limitation....