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2008 (1) TMI 398 - SC - Central ExciseWhetehr appellants entitled to benefit of Notification No. 28/94-C.E., dated 1-3-1994 the Notification No. 8/96-C.E., dated 23-7-1996 and its successor Notifications? Held that:- In view of the decision of this Court in Rajasthan State Chemicals Works case (1991 (9) TMI 73 - SUPREME COURT OF INDIA) the stand about the applicability of Section 11A was held to be untenable. It held that the period involved was subsequent to the decision. Strong reliance is placed on a letter of Commissioner of Central Excise dated 10-1-1999, to contend that there was doubt about the nature of the process involved. Said letter is significant. In view of this Court's decision it is not known under what circumstances the letter was written. It is to be noted that the penalty amounts were equivalent to the extra demand raised but the Tribunal has reduced to it to Rs. 25,00,000/-. Therefore, the appeal No. 1856 of 2005 is clearly without merit and we dismiss it. So far as Civil Appeal No. 5398 of 2002 is concerned, the period involved is 14-12-1980 to 15-12-1985 when the first notice was issued on 9-12-1986. It appears that in the show cause notice reply there was no reference to this aspect. factually the stand that there was no use of power is unsustainable. Coming to the period of limitation the five years period has to be reckoned backward from 8-2-1989 when the show cause notice was issued. The Commissioner shall work out the liability and the penalty amount has to be equivalent to the amount of tax demand.
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