COMMNR. OF CENTRAL EXCISE, MUMBAI vs M/S. LAJYA DYEING & BLEACHING WORKS

The Supreme Court upheld the Tribunal's decision that the extended period of limitation under Section 11A of the Central Excise Act, 1944, was not applicable to the assessee, a job worker, as there was no evidence of deliberate mis-declaration of fabric composition. The Court noted that the assessee relied on the declarations made by merchant manufacturers and there was no legal obligation for processors to verify these declarations. Consequently, the demand for differential duty and penalties imposed were set aside, affirming the Tribunal's finding as a factual determination.