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2015 (5) TMI 1011 - AT - Central ExciseManufacture - whether the process to which the rejected goods are subjected to does not amount to manufacture and accordingly, on removal of the goods as such, the appellant was required to reverse the Cenvat credit availed? - extended period of limitation invoked - Held that:- In the facts of the appellant’s case, it is evident that the processes of testing of such rejected goods after receipt, does not amount to manufacture. As such, it is held that the appellant is required to reverse the Cenvat credit availed under Rule 16(1) on the goods so removed/cleared. As regards invocation of extended period, find that the appellant had made proper disclosure in its Books of Account and have also cleared goods on the proper invoice upon payment of duty and also the facts were declared in the ER-1 returns. There is no suppression and/or contumacious conduct found on the part of the appellant. Thus, it is held that the extended period of limitation is not invocable. The demand is confined to the normal period from the date of show cause notice. Further, the issue is interpretational in nature. Thus, the penalty imposed is set aside. - Decided partly in favour of assessee
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