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2015 (3) TMI 592 - SC - Central ExciseExtended period of limitation - Suppression of facts - Manufacturing activity or not - Assessee is engaged in the business of cutting larger steel plates into smaller size and shapes as required by the customers - appellant, under the belief that the aforesaid process does not amount to manufacture did not get himself registered - Held that:- Even as per the Department, there were certain doubts relating to excisability of the process of profile cutting - if the appellant also had nurtured this belief that the process carried out by him does not amount to manufacture and did not pay the excise duty, we can safely infer that this conduct of the appellant was a bona fide conduct and cannot be treated as contumacious or willful suppression. Thus, we are of the opinion that on the facts of this case, proviso to Section 11A(1) of the Act would not be attracted. Once that is held, it is obvious that the period of limitation for serving show cause notice shall be six months. In the present case, the show cause notice covered the period from October, 1991, to September, 1996 and the show cause notice was given on 01.11.1996. In the said show cause notice when only a period of six months could be covered from the date of show cause notice, it will go back to period from May, 1996 onwards. - imposition of penalty upon the appellant is unwarranted. - Decided partly in favour of assessee.
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