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2014 (5) TMI 382 - HC - Central ExciseDuty demand - Penalty - Bar of limitation - manufacturing without aid of power - Benefit of the exemption notification under Serial No.13 of Notification No.9/96-CE, dated 23.07.1996 as amended and also exemption notification No.40/95-CE, dated 16.03.1995 - the process of calendaring, stentering, padding, etc. are carried on with the aid of power and bleaching, dying and printing and process not mentioned in the Notification No.40/95 - Held that:- aspect of ineligibility of the benefit of Notification No.40/95 would get attracted only when the respondents' usage of power in the process of bleaching, dyeing and painting and not with respect to usage of power in carrying out any of the processes mentioned in paragraph No.2 of the Notification. Likewise, under Notification No.9/96 which was a subsequent notification, there were 12 processes which were specified and the disability is mentioned in Condition No.1 which is only in respect of the manufacture of denim fabrics. In relation to the respondents, it is nobody's case that they are manufacturers of denim fabrics or other fabrics mentioned in the prohibited category. Order of the Commissioner itself records that the respondents by letter dated 23.03.1998 had explained in detail the process of manufacturing since 1992 and periodical checks were being done by the Department, and as a matter of fact, a show cause notice was issued earlier and an order in original was passed in O.I.O. No.2/98 - ASR, dated 19.02.1998 (mentioned as 1988) which goes to show the knowledge of the departmental officials, and in that view of the matter, there is no justification for invoking the extended period of limitation under Section 11-A of the Act, and there is no contra material before us to take a contra view. Even on the ground of limitation, the appeal of the Department would fail - Decided against Revenue.
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