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2024 (3) TMI 279 - AT - Central Excise100% EOU - benefit under Notification No. 2/95 – C.E. dated 04.01.1995 availed - failure to achieve a positive NFEP - invocation of extended period of limitation - HELD THAT:- The Appellant is a 100% EOU engaged in the manufacture of excisable goods and has availed benefit under Notification No. 2/95 – C.E. dated 04.01.1995 which provides exemption on 50% of the export goods allowed to be sold in DTA upon fulfillment of terms as provided under EXIM Policy. The entire demand for custom duty has been raised out of the Audit Objections by the Audit conduct by the CERA Officials in 2008 for the transactions pertaining to the time period October 2000 – December 2000. It cannot be denied that the Department had sufficient time to conduct investigations pertaining to the issues raised before the lapse of ten years for that is for the time period for which the show cause notice has been issued. It is further noted that the lower authorities have only relied on B-17 Bond executed by the Appellants to invoke larger period of limitation thereby going beyond the scope of issues raised in the Show cause Notice that the Department was unable to provide cogent reason to invoke the same. The fact that the adjudicating authority has dropped the penalty as proposed in the Show Cause Notice shows that the demand is patently time barred and there in no evidence on record to establish suppression of facts or malafide intention to evade duty. Therefore the entire demand in this case is time barred as for the period of October 2000 – December 2000 show cause notice was issued on 15.02.2010 which is not only beyond normal limitation but also that the Department has incorrectly invoked extended period of limitation without adducing evidence or cogent reason in support of their claim. The demand is barred by limitation - the impugned order set aside - appeal allowed.
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