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2013 (9) TMI 170 - AT - Central ExciseBenefit of Notification No. 137/77-CE dated 18/6/77 as amended and Notification No. 130/82-CE dated 20/4/82 - Notifications grant exemption to cotton fabrics processed without the aid of power and steam, subject to certain conditions - The appellant s factory was found to be using steam for the purpose of drying of the processed fabrics – Held that:- The use of steam cannot be held to be as used in the dyeing process - Steam is not used for running of any machine for the purpose of dyeing but is admittedly used after the process of dyeing for the purpose of drying the wet fabrics, that too during rainy season only - The denial of notification, in question, is neither justified nor warranted – Decided in favor of Assessee. Limitation – Issue of Show-cause notice issued after 15 years from the date of visit of the Revenue officers - During the search operation, certain processed fabrics were also put to seizure by the officers, which action was challenged before the Hon’ble Allahabad High Court. The High Court only stayed the recovery of duty in respect of such seized fabrics – Held that:- Nothing in the order of the Hon’ble High Court restraining the Revenue from issuing a show cause notice for the past period. As such the Revenue’s stand that they were restrained by the Hon’ble High Court for issuance of the show cause notice during pendency of the writ-petition before the Hon’ble High Court is without any merits and cannot be pressed into services for excluding the intervening period of pendency of writ-petition before the Hon’ble High Court for the purpose of deciding the limitation – Demand is barred by limitation – Decided in favor of Assessee.
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