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2023 (10) TMI 728 - CESTAT KOLKATADemand of Central Excise Duty and Clean Energy Cess - requirement to pay duty at the time of removal by the transferor Area - period March 2011-12 to 2014-15 - revenue neutrality - HELD THAT:- It is fact on record that the Appellant has cleared the goods from their unit without payment of duty to their sister unit and the said sister unit cleared the said coals on payment of duty. Although it is a situation of revenue neutrality, but the appellant was monthly required to pay duty at the time of clearance from the transferor unit, otherwise, the Central Excise Act will become redundant - At the time of clearance of goods, the Appellants was liable to pay duty. Extended period of limitation - HELD THAT:- When the fact of clearance of coals from the transferor unit without payment of duty was in the knowledge of the respondent as various correspondences were made during the impugned period and the show-cause notice has been issued to the Appellant by invoking extended period of limitation, in that circumstances, the whole of the demand is barred by limitation. Accordingly, on limitation, the Appellant succeeds. On merit Appellant is liable to pay duty, but on limitation, the show-cause notice fails. Accordingly, the demand confirmed in the impugned order is not sustainable - appeal filed by the Appellant is allowed.
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