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2023 (7) TMI 198 - CESTAT NEW DELHICENVAT Credit - rule 14 of the 2004 Credit Rules read with section 11A of the Central Excise Act, 1944 - levy of penalty under section 15(3) of the 2004 Credit Rules - contravention of rule 6(3A) of the 2004 Credit Rules - levy of service tax on excess baggage charges recovered from passengers - invocation of provisions of section 73(1) of the Finance Act for suppression of facts. Extended period of limitation - HELD THAT:- In the present case, the show cause notice was issued on 21.10.2014. In regard to the demand of CENVAT credit taken in excess of rule 6(3A) of the 2004 Credit Rules, the period of dispute is from July 2010 to March 2011. In regard to the demand of service tax short paid on excess baggage charges, the period of dispute is from April 2009 to March 2012. In the present case, the entire demand is for the extended period of limitation - in the absence of any challenge to this finding, the extended period of limitation could not have been invoked. When the entire demand proposed in the show cause notice is for the extended period of limitation, the demand proposed in the show cause notice has to be set aside, irrespective of the challenge by the department to the issues on merit. The audit of the statutory records of the respondent was conducted from 02.05.2012 to 08.05.2012. The same issues and demand were suggested in the audit report. The respondent had also been filing ST-3 returns. However, the show cause notice was only issued on 21.10.2014, i.e. after more than two years of the facts coming to the knowledge of the department. The department could have issued the show cause notice within the normal period of limitation. The extended period of limitation could, therefore, not have been invoked by the department. The appeal filed by the department deserves to be dismissed and is dismissed.
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