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2022 (8) TMI 492 - AT - Central ExciseReversal of CENVAT Credit - Appellant has used common inputs for manufacture of dutiable goods as well as exempted goods - requirement to pay 8%/10% of the value of the exempted goods i.e. medical oxygen - extended period of limitation - HELD THAT:- The entire case has been made out by the Department on the basis of ER-1 returns. There is no allegation in the show cause notice that the Department was not aware about the manufacturing activity of the Appellant i.e. Industrial Oxygen and Medical Oxygen. It is further observed that apart from the general aversion in the show cause notice, there is no evidence to show that central excise duty has not been paid by resorting to fraud or suppression of facts with an intent to evade payment of duty. It is well settled law that onus is on the Department to prove that extended period of limitation is invokable by adducing evidence. In the present case, no such evidence has been adduced by the Department. As far as demand for the normal period is concerned, it is found that the Appellant has reversed the proportionate cenvat credit which has been availed in the manufacture of exempted goods - Hon’ble Supreme Court in the case of CHANDRAPUR MAGNET WIRES (P) LTD. VERSUS COLLECTOR OF C. EXCISE, NAGPUR [1995 (12) TMI 72 - SUPREME COURT] has held that the claim for exemption of duty on the disputed goods cannot be denied on the plea that the assessee has taken credit of the duty paid on the inputs used in manufacture of these goods. The impugned Order is not sustainable and the same is set aside - Appeal allowed - decided in favor of appellant.
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