COLLECTOR OF CENTRAL EXCISE HYDERABAD Vs. CHEMPHAR DRUGS AND LINIMENTS HYDERABAD

JUDGEMENT

(1.) This appeal is under section 35(L)(b) of the Central Excises and Salt Act, 1944, (hereinafter called 'the Act' ) against the order dated 8th January, 1988 passed by the Customs, Excise and Gold (Control) Appellate Tribunal. The issue involved in this appeal was whether in the facts and the circumstances of the case, the Tribunal was legally justified in restricting the demand of duty to six months prior to the date of issue of show-cause notice, particularly in a case where longer period was invoked on the ground of suppression of information in the declaration furnished by the respondent.

(2.) The respondent manufactured patent and proprietary (P and P) medicines falling under T.I. 14E and also pharmacopoeic preparations falling under T.I. 68 of the Central Excise Tariff of an aggregate value of Rs. 20,59,338.60 and cleared during the period of 1-4-1979 to 31-9-1980, the same without payment of duty, availing the benefit of exemption notification No. 80/80.

(3.) Under the provisions of sub-clause (ii) of clause 2 of notification No. 80/80 dated 19th June, 1980 and sub-clause (iii) of clause (a) of notification No. 71/78 dated 1-3-1978 the manufacturer would not be eligible for exemption under the two notifications in respect of clearances of patent or proprietary medicines from 1st April, 1980 since the notification would not apply to a manufacturer who manufactures excisable goods falling under more than one item of the 1st Schedule of the Act, and the aggregate value of the clearances of all such excisable goods by the manufacturer or on his behalf are cleared for home consumption from one or more factories during the preceding. financial year had exceeded Rs. 20 lakhs.