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2022 (7) TMI 139 - AT - Central ExciseExtended period of Limitation - Levy of National Calamity Contingent Duty (NCCD) - POY falling under Chapter 5402 - demand on the ground that Notification No. 67/95-CE dated 16.03.1995 does not exempt from payment of NCCD - demand alongwith Interest and penalty - HELD THAT:- The case can be decided on the ground of limitation itself. The issue involved is of levy of NCCD in respect of Partially Oriented Yarn falling under Chapter 5402 consumed captively for the manufacture of Polyester Texturised Yarn. On the said issue, there are number of judgments as cited by the appellant and some of the judgments are in favour of the appellant. The issue involved is a neat question of law which involved interpretation of exemption provided in respect of NCCD. It is also a fact on record that appellant have declared their manufacturing process to the department and they were filing ER-1 returns regularly. Since the activity of entire manufacturing i.e. right from the polyester chips stage to the final stage i.e. Polyester Texturised Yarn including the manufacture of intermediate goods on job work basis were in the knowledge of the department, it cannot be said that there is any suppression of fact on the part of the appellant. In respect of the entire demand which is for the period from 01.07.2003 to 31.07.2004, the show cause notice was issued on 31.07.2008. The entire period is beyond one year, hence the demand under proviso to Section 11AC is not sustainable. The demand is hit by limitation hence the impugned order is set-aside - the appeal is allowed only on limitation without going into merits of the case.
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