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2011 (7) TMI 649 - AT - Central ExciseMODVAT Credit - whether MODVAT credit of the duty paid on the tin containers received in the packing unit of the assessee and used in the manufacture of their marketable product, viz., canned lubricating oil during the material period is liable to be denied to them - Held That:- It is not in dispute that the blending and packing units were covered by a single registration upto 12/09/95, thereby meaning that both the units were parts of the registered factory. Receipt of containers in the packing unit during the said period was receipt of input in the factory. Hence there is no question of denial of MODVAT credit for the period upto 12/09/95 - also it is not in dispute that, during the period from 12/09/95 also, the assessee paid duty of excise on their final marketable product on the basis of assessable value determined by including the cost of packing. The packing activity was treated as part of the manufacture of the finished product and the same fact was acknowledged by the Revenue, which accepted the payment of duty. Reliance placed on Vikram Cement (2006 (1) TMI 130 - SUPREME COURT OF INDIA) and Jaypee Rewa Cement case (2001 (8) TMI 1332 - SUPREME COURT OF INDIA). Extended period of limitation - Held that:- Assessee did not suppress the material fact, though they had 'deliberate intention to save inadmissible credit'. There was no supression thus legal requirement for invoking extended period for recovery of inadmissible credit, levying interest thereon and imposing penalty was not fulfilled in this case.
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