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2015 (11) TMI 240 - AT - Central ExciseDuty demand - Goods destroyed in fire - CENVAT Credit - Invocation of extended period of limitation - Held that:- The main duty demand of ₹ 95,43,677/- is in respect of alleged loss in fire of certain finished products. According to the appellant, however, the goods lost were the inputs in process i.e. work-in-progress goods in the reaction tanks and were not finished goods, as after the completion of manufacturing process, they are taken out from the reaction tanks, tested for quality control and are packed and as such, the goods lying in reaction tanks have to be treated as work in progress and not finished goods and therefore, they were not entered in RG I register. Prima facie, we find merit in this plea of the appellant. Moreover, we also find that while the Superintendent had submitted his report on 3.3.2010 and clarifications were given by the appellant on 25.4.2011, but still show cause notice was issued beyond the normal period of limitation of one year. In the circumstances of the case, longer period of limitation under section 11A is not invokable in terms of Tribunal's decision in Nectar Lifesciences Ltd. (2013 (8) TMI 843 - CESTAT NEW DELHI). As regards the Cenvat credit demand of ₹ 4,41,949/-, the same is in respect of loss of Cenvat credit availed inputs namely the packing material and solvent, Though on merits, the appellant would not be eligible for Cenvat credit, the demand for this Cenvat credit is, prima facie, not sustainable as, an discussed above, the same is time barred. - Stay granted.
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