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2015 (10) TMI 913 - AT - Central ExciseDemand of interest - Invocation of extended period of limitation - whether the respondent is entitled to adjust the abated amount in their duty liability for the month of February, 2011 or not - Held that:- The adjustment of abated amount against the duty liability for the month of February, 2011 was intimated by the respondent to the department well within time and department has not taken any action thereon. Further, the liability of duty against the respondent is as per Section 3A(3) of Central Excise Act, 1944 read with Pan Masala Packing Machine Rules, 2008. On going through the above said provisions, there is no procedure for filing the abatement claim and same cannot be utilized without prior sanction of the departmental officers. The amount of abatement is not in dispute when the respondent applied for adjustment on 2-2-2011 the claim of abatement if at all required by the revenue to be sanctioned the same was to be sanctioned immediately but same has not been done. Moreover, when there is a short payment of duty for the month of February, 2011, no show cause notice for demand of duty has been issued to the respondent. Therefore, demand of interest is not sustainable. - Admittedly, in this case the fact of adjustment of abetment amount to duty against the duty liability for the month of February, 2011 was in the knowledge of the department. Therefore, show cause notice cannot be issued by invoking extended period of limitation. Admittedly, in this case show cause notice has been issued by invoking extended period of limitation. - Decided against Revenue.
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