APPLIED ELECTRONICS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) IN these five appeals, arising out of a common Order No. 32/92 -Collr., dated 30 -6 -1992 passed by the Collector of Central Excise, Mumbai, the issue involved is whether the exemption under Notification No. 175/86 -CE., dated 1 -3 -1986 is available to the excisable goods manufactured by M/s. Swicon Micro System Pvt. Ltd.

(2.) BRIEFLY stated the facts are that M/s. Swicon Micro System Pvt. Ltd. manufacture electronic testing and measuring instruments, electrical machinery, mechanical appliances, etc. On 26 -2 -1989, Central Excise Officers intercepted a vehicle No. MTF 2936 carrying electronic testing and welding instruments and temperature controllers valued at Rs. 1,78,337.50. The goods were affixed with brand name 'APLAB' which was concealed with stickers of 'Swicon'. The Officers also found 5 meters and 6 power supply valued at Rs. 22,000/ - unaccounted in their factory premises. All the goods were seized by the Officers. A show cause notice dated 24 -8 -1989 was issued to them alleging that goods manufactured by them were affixed/screen printed with brand name 'APLAB's of M/s. Applied Electronics Ltd.; that the brand name was concealed by affixing a sticker having name 'Swicon' over the printed brand name; that all the excisable goods manufactured by them were sold exclusively to M/s. Applied Electronics who in turn sold them all over India. The Collector, under the impugned order, confirmed the demand of Central Excise duty amounting to Rs. 12,76,010.35 p. in respect of goods cleared during the period from October, 1987 to January, 1989; confirmed the duty of Rs. 28,091 -31s in respect of goods cleared without payment of duty and seized on 28 -2 -1989, confiscated the seized goods with an option to redeem the same on payment of fine Rs. 2,00,000/ -; imposed penalty as under :

(3.) THE learned Advocate also mentioned that the demand is hit by time limit as the demand confirmed is for the period from October, 1987 to January, 1989 and the show cause notice was issued in August, 1989; that larger period of limitation is not invokable as they had filed the classification lists which had been approved by the Department; that it has been held by the Tribunal in C.C.E. v. Muzzaffarnagar Steels -1989 (44) E.L.T. 552 that before approving the classification list, the Assistant Collector should fully satisfy himself about the particulars of goods being manufactured and the process of manufacture and the relevant facts. He also relied upon the decision in the case of Nestler Boiler Pvt. Ltd. v. CCE, 1990 (50) E.L.T. 613 (T) wherein also it was held that while approving the classification list, the department is expected to study the process of manufacture.