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2014 (1) TMI 1711 - AT - Central ExciseBenefit of Notification No. 67/95 denied - Denial of remission of duty - extended period of limitation - Held that:- As in the show cause notice there is no indication of denial of remission but simply a demand for duty. It is not indicated as to how the goods have to be treated as removed from the factory. Secondly in the present Central Excise Rules when duty paid goods are received back into the factory and the process amounts to manufacture, Cenvat credit can be availed and such credit can be utilized for payment of duty on the goods which are manufactured after reprocessing. In the case of piston, once they are melted, in the normal process pistons would be manufactured again and such manufactured piston would be cleared. Therefore in terms of Rule 16 also even if the pistons were taken back for processing after removal the appellants would be perfectly well within his rights to take back the credit of duty paid by the assessee at the time of removal and utilise the same for payment of duty on the finished goods. Therefore there is considerable force in the argument advanced by the learned counsel that the benefit of Notification No. 67/95 would be available in this case. Thus the situation here is comparable to the provisions of Rule 16 and since the goods have not been removed on payment of duty, benefit of Notification No. 67/95 would be applicable. Under these circumstances, the extended period for demanding duty should not have been invoked at all in view of the fact that there can be two views on the statutory provisions themselves as discussed above. When there is a question of interpretation, extended period would not have been invoked. On merits also, find no case for demanding the duty, interest and imposition of penalty - Decided in favour of assessee
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