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2020 (3) TMI 484 - CESTAT ALLAHABADNature of activity - process amounting to manufacture or not - sale or service? - job-work for the manufacture of Hand-pumps, who were sending them semi-finished hand-pumps for the purpose of galvanization. After galvanization, the galvanized hand-pumps were being returned to the principal manufacturer - credit availed on various inputs used for their own manufacture as also for galvanization on job-work basis, they were reversing the credit in respect of the goods so used for galvanization - benefit of N/N. 10/2006-CE. - suppression of facts or not - time limitation. Revenue entertained a view that galvanization undertaken by the appellant is not a manufacturing process and same amounts to providing ‘Business Auxiliary Service’ to principal manufacturer and as such the appellant should have paid the service tax on the same. HELD THAT:- The appeal can be disposed on the point of limitation itself. Admittedly, the entire demand is beyond the normal period of limitation. It is also a fact that the appellants were disclosing the reversal of Cenvat credit in respect of the items used in the job work activity, in their monthly returns. This fact is sufficient enough to establish the bonafide of the assessee that they were entertaining bonafide belief that the galvanization amounts to manufacture and since hand-pumps were exempted, there is no requirement to pay any duty of excise also. In the absence of any other evidence to attribute any malafide on the appellant, the extended period is not available to revenue - Appeal allowed - decided in favor of appellant.
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