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2017 (7) TMI 475 - AT - Central ExciseScope of SCN - Benefit of N/N. 67/95-CE dated 16.3.1995 - denial of benefit on the ground that the appellant has consumed the dyed yarn in their factory and since the handloom durries was chargeable to nil rate of duty the benefit of Notification not available - Held that: - the provisions of Rule 12B were neither invoked in the show cause notice nor dealt in the adjudication order. On being asked, the Learned AR also could not show us where Rule 12B was referred directly or indirectly in the SCN. In the absence of the same, the Commissioner (Appeals) clearly traveled beyond the scope of SCN - invocation of Rule 12B by the Commissioner (Appeals), which fastens duty liability on the appellant, is without jurisdiction. Extended period of limitation - penalty - Held that: - the dyed yarn for which duty has been demanded is used in the manufacture of goods which were exported. In case the appellants were to pay duty on the inputs used in the exported good, the same would have been liable to be refunded to the appellants themselves as manufacturer exporter. In these circumstances, the situation was revenue neutral and there appears to be no mala fide on part of the appellants. Hence, extended period and penal provisions are not applicable in this case. Appeal allowed - decided in favor of appellant.
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