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2019 (10) TMI 1141 - CESTAT ALLAHABADArea based exemption - benefit of N/N. 50 of 2003 - Job-work - process amounting to manufacture - the benefit of the job work was not extended to the appellant on the ground that principal manufacturer was exempted in terms of the area based exemption notification and was not paying any duty of excise - HELD THAT:- There was a finding in favor of the assessee by the Original Adjudicating Authority as regards admissibility of cenvat credit which finding was not challenged by the Revenue, even though the Assistant Commissioner did not extended the benefit and did not calculated the value of demand by neutralizing the same against the cenvat credit. In such a scenario it was not justifiable on the part of Commissioner (Appeals) to deny the cenvat credit to the assessee on the ground of invoices being more than 6(six) months old - the demand now being confirmed against the assessee is required to be neutralized against the cenvat credit available to them for which they will produce documentary evidence. Time limitation - HELD THAT:- Inasmuch as appellants were paying service tax on the same activity and were filing ST-3 Returns there was due knowledge on the part of the Revenue and no mala fide can be attributed to the appellant so as to invoke the longer period. Penalty - HELD THAT:- Inasmuch as we have held absence of any mala fide on the part of the appellant, the penalty imposed upon them is set aside in toto. The matter remanded to Original Adjudicating Authority to re-quantify the duty falling within the normal period of limitation and after extending the benefit of cenvat credit of duty paid on the inputs, as also by taking into account the service tax paid by the appellant in respect of the same activities during the relevant normal period. Appeal allowed by way of remand.
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