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2016 (1) TMI 64 - AT - Central ExciseDuty demand - Manufacture of transmission assembly - Captive consumption - during the period 1996-1998, the tractors with capacity of less than 1800 cc were exempt - Extended period of limitation - Held that:- single assembly line had eliminated the emergence of various intermediate products for separate accounting and listing, and integrated assembly line is a continuous seamless process finally resulted in the manufacture of tractors. As such it is not sustainable to allege suppression of facts or wilful mis-statement on the part of the appellants with reference to non payment of central excise duty on transmission assembly manufactured and consumed by them. The whole marketability and taxability was settled, only by the Apex Court Change over to integrated assembly line resulted changes in the classification list filed in July, 1994 when certain items indicated in the earlier classification list are not mentioned in revised list. This cannot be construed as wilful mis-statement on the part of the appellants. The reason for revised classification list has been explained in the covering letter of the appellants. Finally, we find that non payment of duty during the impugned order cannot be attributed to wilful conduct of the appellants as tax liability on such items was subject matter of dispute and settled only by the Apex Court. As such, if at all, it can be a mistake which is common to both department and the appellant and in such situation no extended period can be invoked and no penalty can be imposed on that ground. - Impugned order is set aside - Decided in favour of assessee.
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