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2013 (7) TMI 375 - AT - Central ExcisePenalty - Extended period of limitation - Received raw materials from units who availed deemed exports facility under paragraphs 8.3(a) and (b) of the Foreign Trade Policy (FTP) - Determination of rate of duty - Appellant continued to pay duty as per Sr. No. 3 of Notification No. 23/2003-CE dated 31.03.2003 even after amendment by Notification No. 29/2007-CE dated 06.7.2007 - The supplied raw materials under paragraph 8.3(a) and (b) of the Foreign Trade Policy have to be treated as imported goods and duty at the rates applicable from time to time under serial No. 2 of the Notification No. 23/2003-CE dated 31.3.2003, required to be made applicable. Held that:- So far as imposition of penalties upon the appellants - it has been prima facie brought out that Appellant had no knowledge of the fact that GHCL were availing deemed export facility under Para 8.3(a) and (b) of FTP. Appellants have thus made out a good case for non imposition of penalties under Rule 25 and 26 of the Central Excise Rules - Aappellant is directed to deposit the entire differential duty liability along with interest. Subject to the payment of above deposit, there shall be stay on the remaining amounts of penalties till the disposal of appeals. Limitation - show cause notice was issued within one year of the date of debonding. - Held that:- Since the PC are a 100% EOU, demands can be raised as per the provisions of the B-17 bond executed by them. As per this bond, there is no time limit for demanding duty in the case of short payment by an EOU – In the case before CESTAT, even the B-17 bond was not invoked by Commissioner but in the instant case before us, B-17 bond has been invoked both in the show cause notice as well as the adjudicating order. Accordingly, first appellant has, prima facie, no case on time bar. - Decision in Endress + Hauser Flowtec (I) Pvt Limited vs. CCE, Aurangabad [2008 (11) TMI 159 - CESTAT, MUMBAI] distinguished - Decided against the assessee.
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