Demand of Central Excise Duty cannot be sustained being time barred & in absence of any suppression by assessee

Ambica Engineering Works Vs C.C.E. & S.T. (CESTAT Ahmedabad)

The CESTAT, Ahmedabad in the matter of Ambica Engineering Works v. C.C.E. & S.T.-Surat-I [Excise Appeal No. 10859 of 2020, dated June 7, 2022] set aside the demand order has held that invoking extended limitation period by the Revenue Department cannot be sustained, being time barred and is invalid in the absence of suppression of fact with intent to evade payment of duty on the part of the assessee.

Facts:

Ambica Engineering Works, (“the Appellant”) is engaged in the manufacturing of textile machineries, falling under Chapter 84 of the Central Excise Tariff Act, 1985 (“the Central Excise Act”). The Appellant cleared the manufactured goods by availing exemption under Notification No. 06/2002-Central Excise dated March 01, 2002 (“N/N 06”).

The Appellant submitted an application on August 02, 2007 for Central Excise Registration, which was granted. Further, a post facto verification was done by the Revenue Department (“the Respondent”) of the premises and intended purpose for which Central Excise Registration application was made by the Appellant and a report was given w.r.t. eligibility of exemption on the goods manufactured by the Appellant under Notification No. 06/2006 Central Excise dated March 1, 2006 (“the Exemption Notification”).

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