Mere non-payment of duties is not collusion or willful misstatement or suppression of facts

We are sharing with you an important judgement of the Hon’ble Supreme Court in the case of M/s UNIWORTH TEXTILES LTD Versus COMMISSIONER OF CENTRAL EXCISE, RAIPUR on the issue: Issues: Whether mere non-payment of duties is collusion or wilful misstatement or suppression of facts? When can the extended period of five years be invoked in a Show Cause Notice for demand of duty? Facts & Background: M/s Uniworth Textiles Ltd. (“the Appellant” or “Uniworth”), is an Export Oriented Unit (“EOU”) and is engaged in the manufacture of wool and poly-wool worsted grey fabrics. The Appell...