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2016 (8) TMI 938 - AT - Central ExciseDemand in terms of Notification No. 22/03-CE dated 31.03.2003 - Invokation of extended period of limitation - willful misstatement/ suppression of facts - waste and scrap arisen in the course of production processing or in connection therewith - Held that:- the appellant had all along held that it considered the impugned waste and scrap as not subject to duty. Further the SCN itself concedes that the Revenue was not confirmed whether such waste and scrap was out of indigenous or imported material and therefore, it is to be treated as generated imported material on which higher rate of duty is applicable but this observation is unsustainable as the onus to establish that such waste and scrap was generated out of the imported raw material is clearly on Revenue. Also in view of the decision of Hon'ble Apex court in the case of Uniworth Textiles Ltd. [2013 (1) TMI 616 - SUPREME COURT], the Supreme Court held that mere non-payment to duty is not equivalent to collusion or willful misstatement or suppression of facts. The main body of the Section, in fact, contemplates ordinary default in payment of duties and leaves cases of collusion or wilful mis-statement or suppression of facts, a smaller, specific and more serious niche, to the proviso. Therefore, something more must be shown to construe the acts of the appellant as fit for the applicability of the proviso. Hence, the demand is unsustainable and extended period of limitation is not invokable. - Decided in favour of appellant
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