- (1.) The Appellant herein is the manufacturer of Foundrinier Synthetic Wire Cloth and the said cloth is of a kind suitable of industrial use in paper making machine. According to the Appellant it was at all times covered by sub-heading 5909.00 of the Schedule to the Central Excise Tariff Act, 1985. However, in the year 1992, first show cause notice i.e. on 25-9-1992 was issued by the Department for additional Excise duty for the period September, 1987 to June, 1992 whereby the additional duty for the sum of Rs. 3.64 crores on Grieg fabric was demanded on the ground that the said fabric constitutes an Intermediary Product (LP.) which was an independent marketable and excisable product.
(2.) Thereafter, seventeen show cause notices followed and in all eighteen show cause notices were issued. The period covered by these show cause notices is September, 1987 to June, 1992; July, 1992 to January, 1996 and January, 2000 to March, 2003. Thus the total period covered is September, 1987 to March, 2003 except February, 1996 to December, 1999.
(3.) The first show cause notice dated 25-9-1992 led to the passing of an Order-in-Original dated 10-2-2001 confirming the demand of additional duty proposed in the show cause notice and also a penalty of Rs. 72.73 lakhs. Similar order was passed in respect of other 17 show cause notices though it was one consolidated order.;