Page 212 - ELT_15th July 2020_Vol 373_Part 2

194 EXCISE LAW TIMES [ Vol. 373

sessee to explain as to why such benefit be not discontinued and the
amount, subject matter of exemption, be not recovered alongwith
interest and penalty thereupon.
3. The assessee responded to the same. Explanation so furnished did
not find favour, with the Commissioner, Central Excise & Service Tax, Chandi-
garh, passing an order dated 19-2-2013, confirming levy of central excise duty
and imposing penalty in the following terms :-
“5.1 In view of above discussions I passed the following order :-
5.2 I confirm central excise duty amounting to Rs. 84,81,935/- (Eighty
Four Lakhs Eighty One Thousand Nine Hundred & Thirty Five only)
against the Noticees under proviso to Section 11A of the Act by invoking
extended period of drop the remaining demand of Rs. 87,75,974/- (Eighty
Seven Lakhs Seventy Five Thousand Nine Hundred and Seventy Four
only).
5.3 I order charging of interest under Section 11AB of the Act on the
amount confirmed against Sr. No. 5.2 above.
5.4 I impose penalty of Rs. 84,81,935/- (Eighty Four Lakhs Eighty One
Thousand Nine Hundred & Thirty Five only) on the Noticees under Section
11AC of the Act.”
4. Assailing the same, assessee preferred an appeal which stands de-
cided in its favour by the Customs, Excise & Service Tax Appellate Tribunal,
New Delhi, vide order dated 13-7-2015, in case titled as M/s. Deyam Industry v
C.C.E. & S.T., Chandigarh. Noticeably, the Tribunal quashed and set aside the or-
der so impugned before it for the reason that action initiated by the revenue was
beyond the period of limitation and no ground for invoking the extended period
was made out by the revenue, making the case fall within the exceptions carved
out for taking appropriate action, beyond the prescribed period of limitation.
5. For adjudication of the present appeal, we are concerned with the
provisions of Section 11A of the Act, which we reproduce as under :-
“11A. When any duty of excise has not been levied or paid or has been
short-levied or short-paid or erroneously refunded, whether or not such
non-levy or non-payment, short-levy or short payment or erroneous re-
fund, as the case may be, was on the basis of any approval, acceptance or
assessment relating to the rate of duty on or valuation of excisable goods
under any other provisions of this Act or the rules made thereunder, a Cen-
tral Excise Officer may, within one year from the relevant date, serve notice
on the person chargeable with the duty which has not been levied or paid
or which has been short-levied or short-paid or to whom the refund has er-
roneously been made, requiring him to show cause why he should not pay
the amount specified in the notice :
Provided that where any duty of excise has not been levied or paid or has been
short-levied or short-paid or erroneously refunded by reason of fraud, collusion or
any willful mis-statement or suppression of facts, or contraction of any of the pro-
visions of this Act or of the rules made thereunder with intent to evade payment of
duty, by such person or his agent, the provisions of this sub-section shall have ef-
fect, as if, for the words “one year”, the words “five years” were substituted.”
(emphasis supplied)

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