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2012 (11) TMI 959 - HC - Central ExcisePeriod of limitation - demand of duty as no manufacturing activity to bring into existence gauze fabrics - Held that:- it is true that in the show cause notice it was conveyed that the respondent had not registered itself with a view to evading duty and that therefore larger period of limitation would be invoked. It may be that such issue of allegation was not in so many words denied by the respondent. However, in the show cause notice and during personal hearing before the Commissioner, the central defence of the respondent was that the respondent undertook no manufacturing activity to bring into existence gauze fabrics. Further that before further process, such fabric could not be marketed. On such twin grounds, the assessee held a belief that no duty was required to be paid. It was also pointed out that the assessee did not avail of any Cenvat credit on the inputs used. Under the circumstances, the respondent had put up a case of bonafide belief. Also the Commissioner upheld such view of the assessee, larger period of limitation could not be applied - in favour of assessee.
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