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

Last updated: 06 July 2022

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Quick Summary

The CESTAT, Ahmedabad has ruled that a demand for Central Excise Duty cannot be sustained if it is time-barred and there's no evidence of the assessee suppressing facts with intent to evade payment. In this case, the Revenue Department had conducted verification and had knowledge of the exemption claimed by Ambica Engineering Works. The Tribunal found that the department failed to consider this verification report and that the assessee's claim of exemption, even if mistaken, did not amount to suppression of facts or intent to evade duty. Consequently, the demand order was set aside.

Court :
CESTAT, Ahmedabad

Brief :
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.

Citation :
Excise Appeal No. 10859 of 2020, dated June 7, 2022

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