TaxTMI 
TaxTMI 
2001 (9) TMI 139
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....ndey, learned Sr. Advocate, submitted that with the expansion of Canal Irrigation, the Irrigation Department of the then United Province had set up departmental workshop to make and repair iron sluices, gates, gears, and other lift hardwares; that the Provincial Legislature enacted U.P. State Tubewells Act, 1936 which came into force w.e.f. 13-3-1937; that with the advent of power driven pumps, these workshops started making parts to repair and replace the worn off parts of the State tubewells; that 4 show-cause notices were issued to the workshop for demanding Central Excise duty for the period from 1993-94 to May, 1999; that the Commissioner Central Excise confirmed the demand of Central Excise duty amounting to Rs. 56,16,117.40 and impos....
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....cation No. 281/86-C.E. which provides exemption to all excisable goods manufactured in a workshop within a factory and intended to be used in the said factory or any other factory of the same manufacturer or maintenance of machinery installed therein. He also claimed the benefit of small scale exemption Notification No. 1/93 and its successor notification. He, further, submitted that the provisions of proviso to Section 11A(1) of the Act is not attracted to the facts of the present matter as there was no fraud, collusion or wilful mis-statement or suppression of facts or contravention of any provision with an intent to evade payment of duty; that they were under the bona fide belief that they were not under any obligation to either take reg....
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....her these provisions cannot be made applicable to the period prior to their insertion in the Central Excise Act, i.e. 28-9-1996. 5.Countering the arguments, Shri M.P. Singh, learned D.R., submitted that the Central Excise duty is leviable on all goods produced or manufactured in the country unless and until it is exempted by Notification issued by the Central Government; that Notification No. 57/75 was to remain in force only upto 28-2-86 as per Notification No. 88/86-C.E. dated 10-2-86; that the benefit of Notification No. 281/86 is not available to the workshop inasmuch as the parts were meant for repair/manufacture of P.D. Pumps and not of any machinery within the factory of manufacture or any other factory of the manufacture. The lea....
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....acture of footwears. Finally, the learned D.R. submitted that there was no ground for holding bona fide belief that duty was not payable by them as the workshop did not disclose the fact of manufacture of excisable goods nor complied with the Central Excise formalities and removed the excisable goods without payment of duty in contravention of the provisions of the Act and Rules. The vital information has been suppressed from the Department and accordingly extended period of limitation is invokable; that in first show cause notice dated 28-4-98 the period covered is from 1993-94 to 1997-98 (upto February, 1998); that thus part of the period falls after the introduction of Sections 11AB and 11AC in the Central Excise Act, and accordingly pen....
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....It is settled law that an article can be called goods if it is known to the market as such and can ordinarily come to the market for being bought and sold. Actual sale of the article is not important. As parts of P.D. pumps are available in the market for being bought and sold it cannot be said that the parts manufactured by them are not marketable merely because they are not selling the same in market. We also find substance in the submissions of the learned D.R. that the fact of manufacture and removal of the excisable goods from the workshop were not disclosed to the Department and the vital information was suppressed from the Department on account of which Central Excise duty was not paid. Further, mere existence of exemption notificati....