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2018 (9) TMI 21 - AT - Central ExciseArea Based Exemption - N/N. 56/2002-CE - It appeared that the appellant without carrying out any actual manufacturing activity were just showing the production of PVC/PE granules and while availing the duty exemption under N/N. 56/2002-CE - refund of duty on goods exempted by N/N. 4/2006 dated 01.03.2006. Manufacture of goods taking place or not? - Held that:- The sole case has been made out by the Revenue on the basis of statements of Shri Hemraj Takasia, Shri Ramesh Kumar and Shri Jodhraj Sharma the employees of the appellant who retracted their statements on the very next day, stating that statements were taken under threat and pressure. Further, these statements were never examined in terms of Section 9D of the Act - on the basis of statements recorded and without following the procedure of Section 9D of the Act, the said statements are not reliable - it cannot be alleged that appellant was not doing manufacturing activity. Whether the goods manufactured by the appellant were exempt from payment of duty in terms of N/N. 4/2006-CE dated 01.03.2006? - Held that:- Admittedly, it is taken on record that appellant was not required to pay duty and whatever amount has been paid by the appellant was not duty. If the said amount is not a duty, then the provisions of Section 11A of the Act are not applicable to the facts of this case as the said provisions are invokable only in case of non-payment of duty, short payment of duty or erroneously refund of duty. But, in this case no duty is involve, therefore provisions of Section 11A of the Act are not invokable - the amount already refunded to the appellant is not recoverable under Section 11A of the Central Excise Act, 1944. Appeal allowed - decided in favor of appellant.
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