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2019 (3) TMI 1177 - AT - Central ExciseGoods supplied against International Competitive Bidding (ICB) - Sl. No. 91 of the Central Excise N/N. 06/2006-CE dated 01.03.2006 as amended - denial on the ground that M/s. BHEL sent an e-mail to the appellants stating that their corporate office has informed them about non-eligibility of the Excise Duty exemption on the goods cleared to Mega Power Project certificate issued by North Chennai Power Corporation - Held that:- It is very clear that the appellants and/or M/s. BHEL had, on more than one occasion, informed the jurisdictional Superintendent of Central Excise that the clearances of boiler components are being made without payment of duty in terms of Notification No. 06/2006-CE. The appellants therefore were very much under a bona fide belief that they were eligible for the exemption based on the certificates issued by M/s. BHEL. They cannot be faulted that M/s. BHEL took a u-turn on such eligibility and informed them by e-mail at such a period that they were not eligible for such exemption. In any case, based on that e-mail, subsequent to the audit visit and the letter from the jurisdictional Superintendent, the appellants paid up the amounts with interest and informed the fact of the same to the authorities on 30.08.2010. This is definitely a case where the provisions of Section 11A(2B) ibid may very well have been extended to the appellant. Time Limitation - Section 11A(2B) of CEA - Held that:- The SCN has been issued almost four years from the date of the audit objection and the payment made by the appellants. Notwithstanding the contentions of the Ld. AR, it is found that the conclusion reached by the adjudicating authority that the appellants had indulged in mis-statement of facts, etc., is contrary to the evidence on record. In fact, this is a base where the benefit of Section 11A(2B) should have been extended to the appellants. Penalty u/s 11AC of CEA - Held that:- When the ingredients of Section 11AC ibid are not present at all in this case, the penalty imposed under that Section cannot be sustained and is required to be set aside - penalty set aside. Appeal allowed in part.
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