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2019 (3) TMI 1498 - AT - Central ExciseSSI Exemption - crossing of threshold limit - N/N. 8/2003-CE dt. 1.3.2003 - Applicability of Rule 3A of the Interpretative Rules - the items, cakes and pastries, are supplied with other items in a set - Held that:- The appellant has brought this contention for the first time at the Tribunal stage. Also, as correctly pointed out by the Ld. A.R, they had themselves classified cakes, pastries etc. as per their individual tariff entries on which there was no dispute between them and the department. In the circumstances, we are afraid that this argument does not hold water. Time limitation - penalty - Held that:- A number of related proceedings had earlier been initiated against the appellant, including one of denial of SSI exemption Notification No.8/2002-CE and 8/2003-CE. SCN has proposed penalty on him on the ground of “non payment of central excise duty was within his knowledge”. However, it is found that appellants were continuously reiterating with the department, at least from 2002, that they were eligible to claim small scale exemption. In the circumstances, employee of the appellant cannot then be saddled with such charge and penalty imposed under Rule 26 ibid - From the records, it is not forth coming that any appeal was preferred by the department against the said OIA. This being so, subsequent show cause notices proposing similar denial of SSI exemption should have been issued for the normal period of one year instead of invoking extended period of limitation as has been done in this case. It follows that there cannot also be any ingredients present for imposition of penalty under Section 11AC. The impugned demand per se cannot then be sustained, on the grounds of limitation, and will require to be set aside - appeal allowed - decided in favor of appellant.
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