COMMISSIONER OF CENTRAL EXCISE Vs. MODERN DENIM LTD.

JUDGEMENT

(1.) THE Department has filed the present appeal under Section of the Central Excise Act, 1944 challenging the order dated 24 -11 -2011 [ : 2012 (278) E.L.T. 321 (T)] of the Customs, Excise and Service Tax Appellate Tribunal, West Zonal Branch, Ahmedabad, in Appeal No. E/333/2006 by proposing the following question as substantial question of law.

(2.) THE facts involved in the appeal were that the respondent assessee was 100% Export Oriented Unit engaged in the manufacture of cotton denim fabrics, which was an excisable item under the Customs Tariff Act, 1975. The audit party visited the factory of the respondent on 3rd and 4th October, 2002. It raised objection that the assessee had not paid the required duty of central excise on its sales effected in the Domestic Tariff Area (DTA). Initially it was pointed out that there was a short levy for the period from 1 -4 -2000 to 31 -3 -2002 and towards that amount of Rs. 6,52,258/ - was payable as duty. In response to that claim, the assessee paid Rs. 5,03,673/ - from the said period from April, 2000 to March, 2002 on 11 -11 -2002, as per the demand raised by Superintendent, AR -III, Rural Division. Thereafter, the Deputy Commissioner (Central Excise) informed the AG (Audit) that the difference in short levy of duty as calculated by the auditor was already paid and the matter may be treated as dosed.

(3.) AFTER considering the facts and the findings of the adjudicating authority, the Tribunal arrived at its own conclusion as under.