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2019 (6) TMI 260 - AT - Central ExciseRecovery of Excise duty from the purchaser of goods in auction - goods purchased by the appellant in auction and subsequently sold by dismantling the same as waste and scrap - time limitation - HELD THAT:- It is admitted fact that the appellants are neither manufacturer of any excisable goods nor they have used purchased goods for manufacturing other goods. They have only carried out the dismantling of waste factory goods. In this fact, the appellant has neither manufactured excisable goods nor even there an issue of availment of Cenvat Credit on such purchased goods. In this effect, when the appellant is admittedly not a manufacturer of excisable goods, no duty can be demanded under section 11A (i) if at all there is any duty liability in respect of goods purchased by the appellant, it is the manufacturer who is supposed to pay the duty and if at all there is any liability, it will arise against M/s Gujarat Narmada Auto Ltd. Since the appellant have purchased the goods in auction, the department is free to settle their excise duty with Official Liquidator and not from the appellant. It is also not the case of the department that dismantling of capital goods is amount to manufacture. Therefore, there is no basis in the department’s proceedings to demand any Excise Duty from the appellant. Time limitation - HELD THAT:- The entire facts of purchase of goods under auction and sale thereof were well within the knowledge of the department. Therefore, the department if at all was of the view that any duty liability arise, they were free to issue a Show Cause Notice well within the normal period of limitation provided under section 11A (1) - demand is hit by time bar. Appeal allowed - decided in favor of appellant.
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