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2011 (3) TMI 787 - AT - Central ExciseSearch and seizure - Demand beyond normal period of limitation - held that:- The fact that the assessee was manufacturing nylon monofilament yarn of specified denierages and was also claiming exemption on said products was known to the department right from 1995 onwards. - Demand beyond normal period of limitation of one year set aside. Production of yarn in terms of diameters - the department’s case that the yarn produced is not within the denierage prescribed in the notification with a (±) 4% tolerance limit can sustain. - held that:- This demand also will sustain only for the period falling within the normal time-limit of one year i.e., starting from 1-4-2001 to 15-10-2001. From the records it is seen that the appellant had maintained their production account and also issued invoices in terms of diameter of the yarn and not in terms of denierage. Once the accounts are maintained in that fashion the denierage can be computed only according to the formula adopted by the Commissioner. Needless to say, the assessee will be entitled to the proportionate Cenvat credit, (which they have reversed on availing duty exemption).
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