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2015 (10) TMI 1134 - AT - Central ExciseDemand of differential duty - Section 11A - Held that:- Audit has raised objection on the clearance of capital goods on the ground that they have paid excise duty on the lesser value instead of working out correct depreciation value and accordingly demanded differential duty of ₹ 65,043/-. From the above record, it is clearly evident that audit report was communicated by the jurisdictional Range Superintendent on 6.8.2004 only demanding differential duty of ₹ 65,043/- whereas the show cause notice was issued on 6.10.2005. Therefore, it is clearly evident that there is no suppression of facts. The department was well aware of the facts on 6.8.2004 itself when the return was filed in April 2003. Even by taking into account letter dt. 6.8.2004, the demand should have been issued within one year whereas it is clearly established that demand is hit by limitation. It is evident from the records that capital goods have been imported on 9.8.95 under EPCG scheme and subsequently cleared to their sister unit on payment of duty. As clearly seen from audit para raised by the department, which was communicated by the jurisdictional Superintendent by demanding only differential duty on account of wrong calculation of depreciation value. There is no allegation of any contravention of provisions of rules. Accordingly, there is no suppression of facts or intention to evade payment of duty. The impugned order is set aside - Decided in favour of assessee.
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