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2014 (6) TMI 122 - AT - CustomsExemption from additional duty of customs u/s 3(5) of the Customs Tariff Act, 1975 - unit situated at KASEZ - Revenue felt that the appellant had not followed the provisions of law correctly and was engaged in clearance of goods into DTA without carrying out any manufacturing activity as per Section 2(r) SEZ Act, 2005 and as such they were not entitled for the benefit of exemption of additional duty of customs - Bar of limitation - Held that:- show cause notice dated 21-6-2010 issued to the appellant is under Section 28 of the Customs Act, 1962. The provisions of Section 28 requires issuance of show cause notice within period of 6 months from the date of clearance of goods if it is in the normal time limit and extended period of 5 years can be invoked if there is suppression of facts, misdeclaration, etc. with intention to evade duty. Show cause notice dated 21-6-2010 invokes extended period of limitation, on the ground that the appellant had not correctly declared the activities conducted by them on the finished goods which would amount to manufacture - appellant could have entertained a bona fide belief that their activities would not amount to manufacture under SEZ Act. This view is also fortified by the fact that the office of the Development Commissioner of KASEZ had written a letter to the appellant - invocation of extended period of limitation by lower authorities, in this case is incorrect and the findings recorded by the adjudicating authority are also not in tune with the facts, as has been found by us - Decided in favour of assessee.
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