2018 (7) TMI 1274

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....as the appellant's factory was located in industrial area, Mayapur, Haridwar, they were availing the area based exemption Notification No.50/2003-CE dated 10.06.2003, which exempted the goods manufactured by them from whole of duty of excise or additional duty of excise. 2. During a visit of the officers in the appellant's factory, it was found that the appellant was not paying NCCD on clearance of their manufactured goods w.e.f. April, 2007 onwards. Inasmuch as the Notification in question exempted only duty of excise or additional duty of excise, the officers entertained a view that NCCD is not exempted in terms of the said Notification and as such the appellant is required to pay NCCD on their final product. The appellant agreed with ....

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....io longer period of limitation is not available to the Revenue for raising the demands. 5. After hearing the ld.DR and after going through the impugned order we note that extended period stands invoked by Commissioner(Appeals) on the observations that under self-assessment scheme, duty is cast on the assessee to properly assess the goods for payment of duties leviable thereon; non-payment of NCCD was disguised by the appellant under false impression that they were exempt from payment of all duties ; that in the returns filed by them to their range officer, they have mentioned the prevalent excise duty and cess only in the column of „duty forgone' and did not make any mention of NCCD in their returns/reports submitted to the range o....

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....l Excise v. Chemphar Drugs & Liniments [1989 (40) E.L.T. 276 (S.C.)] has observed that extended period is applicable only when something positive other than mere inaction or failure on the part of the manufacturer is proved. Conscious or deliberate withholding of information by manufacturer is necessary to invoke the larger limitation of five years. The department, if had full knowledge of a particular development, the extended period cannot be invoked. To the same effect is another decision of the Hon'ble Supreme Court in the case of Pushpam Pharmaceuticals Company v. Collector of C.Ex., Bombay [1995 (78) E.L.T. 401 (S.C.)] wherein it was observed that extended period is not applicable just for any omission of assessee unless it is deli....