{"id":43746,"date":"2008-02-19T00:00:00","date_gmt":"2008-02-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-lajya-dyeing-bleaching-works-on-19-february-2008"},"modified":"2015-07-24T09:22:46","modified_gmt":"2015-07-24T03:52:46","slug":"commissioner-of-central-excise-vs-lajya-dyeing-bleaching-works-on-19-february-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-lajya-dyeing-bleaching-works-on-19-february-2008","title":{"rendered":"Commissioner Of Central Excise, &#8230; vs Lajya Dyeing &amp; Bleaching Works on 19 February, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Commissioner Of Central Excise, &#8230; vs Lajya Dyeing &amp; Bleaching Works on 19 February, 2008<\/div>\n<div class=\"doc_bench\">Bench: Ashok Bhan, J.M.Panchal<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  2516 of 2002\n\nPETITIONER:\nCommissioner of Central Excise, Mumbai\n\nRESPONDENT:\nLajya Dyeing &amp; Bleaching Works\n\nDATE OF JUDGMENT: 19\/02\/2008\n\nBENCH:\nASHOK BHAN &amp; J.M.PANCHAL\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>\tO R D E R<br \/>\nCIVIL APPEAL NO.2516 OF 2002<\/p>\n<p>\tRespondent-assessee, hereinafter referred to as the &#8216;assessee&#8217;, was a job worker<br \/>\nand was engaged in the processing of fabrics falling under Chapter heading 54 &amp;<br \/>\n55 of the First Schedule to the Central Excise Tariff Act, 1985 (for short &#8216;the<br \/>\ntariff Act&#8217;).  Assessee had accepted the declaration filed by the merchant<br \/>\nmanufacturers who was supplying fabrics to the assessee and gave an undertaking<br \/>\nthat it would comply with all the requirements and discharge all the liabilities<br \/>\nunder the Central Excise Act, 1944 (for short &#8216;the Act&#8217;).<br \/>\n\tAs per notification No.254\/87 as amended by Notification No.57\/89 dated<br \/>\n1.3.1989, benefit of concessional rate of duty is available to a man made fabrics<br \/>\ncontaining polyster below seventy percent.  Assessee filed classification lists<br \/>\ndeclaring the man made fabrics containing polyster below 70%.  The said<br \/>\nclassification  lists  were  approved  by  the  Assistant <\/p>\n<p>C.A.No.2516\/02 &#8230;. (contd.)\n<\/p>\n<p>&#8211; 2 &#8211;\n<\/p>\n<p>Collector, Central Excise believing that the statement of the assessee given in the<br \/>\nclassification lists was true and correct.\n<\/p>\n<p>\tSamples were collected from the assessee-company and they were got<br \/>\nchemically tested which indicated that   they were having polyster above 70%<br \/>\nand thus would attract higher rate of duty and the assessee company had mis-<br \/>\ndeclared the contents of the fabrics at the time of filing the classification lists with<br \/>\ndeliberate intention to evade payment of excise duty.<br \/>\n\tConsequently, a show cause notice dated 4.3.1993 invoking the extended period<br \/>\nof limitation under Section 11A was issued to the assessee for the period<br \/>\n04.03.1989 to 16.01.1990 demanding differential duty of Rs.14,80,269.25 and also<br \/>\nasking them as to why a penalty should not be imposed under the Central Excise<br \/>\nRules, 1944.\n<\/p>\n<p>\tThe assessee had replied to the show cause notice vide its letter dated 7.9.1993<br \/>\nstating that the declarations given by merchants were relied upon and submitted<br \/>\nto the department as prescribed by Notification No.305\/77 and that the charge of<br \/>\nmis-declaration was not tenable and therefore the demand was time barred.<br \/>\n\tThe adjudicating authority held that &#8220;it is presumed  that  assessee  is  also  a<br \/>\nparty  to the mis-\n<\/p>\n<p>C.A.No.2516\/02 &#8230;. (contd.)\n<\/p>\n<p>&#8211; 3 &#8211;\n<\/p>\n<p>declaration in respect of the composition of the fabrics&#8221; and confirmed the<br \/>\ndemand of Rs.14,80,269.75 on the assessee and imposed a penalty of Rs.1 lakh on<br \/>\nthe assessee.  He also imposed a penalty of Rs.5,000\/- each on the merchant<br \/>\nmanufacturers.  Appeal filed by the assessee before the Commissioner(Appeal)<br \/>\nwas rejected.\n<\/p>\n<p>\tIn further appeal to the Tribunal, the Tribunal, relying upon an earlier decision<br \/>\nof the Tribunal in the case of <a href=\"\/doc\/1045513\/\">Paras Prints Pvt. Ltd. vs. Commissioner of Central<br \/>\nExcise, Surat<\/a> reported in 2000 (120) ELT 662 (Tribunal), held that in the absence<br \/>\nof any allegation in the notice or finding of the Commissioner that the appellant<br \/>\nknew or deliberately  failed to declare the correct cost of the grey fabrics and also<br \/>\nthere being no legal requirement for the processors to verify the correctness of<br \/>\nthe declaration furnished by the owners, extended period of limitation is not<br \/>\napplicable.\n<\/p>\n<p>\tThe finding recorded by the Tribunal is a finding of fact which does not call for<br \/>\nany interference.\n<\/p>\n<p>\tThe Appeal is dismissed.  No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Commissioner Of Central Excise, &#8230; vs Lajya Dyeing &amp; Bleaching Works on 19 February, 2008 Bench: Ashok Bhan, J.M.Panchal CASE NO.: Appeal (civil) 2516 of 2002 PETITIONER: Commissioner of Central Excise, Mumbai RESPONDENT: Lajya Dyeing &amp; Bleaching Works DATE OF JUDGMENT: 19\/02\/2008 BENCH: ASHOK BHAN &amp; J.M.PANCHAL JUDGMENT: JUDGMENT O R [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-43746","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Central Excise, ... vs Lajya Dyeing &amp; 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