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2009 (9) TMI 403 - AT - Central ExciseManufacture- Notification No. 58/03- A show cause notice was issued by the Revenue to the appellant requiring to show cause as to why exemption should not be denied to them since the conditions in the Notification No. 58/03-C.E, have not been fulfilled. Besides demand of duty with interest, penalty was also proposed under Section 11AC of CEA, 1944. The Commissioner in the impugned order also negated the claim of the appellant that there was no manufacture of the goods in the factory and the goods manufactured by them were not at all excisable and held that if the exemption under Notification No. 58/03 was not available, they were liable to pay the Excise duty on the goods. Held that- we find that the appellant had a bona fide belief that they were eligible for exemption and therefore cleared the goods under Notification No. 58/03. Subsequently, when the show cause notice was issued, they have tried to claim that the goods were not excisable. Basically, the dispute involves interpretation of law and applicability of exemption notification and therefore we find that there is no justification for imposition of penalty under Section 11AC of CEA, 1944. We also find that the claim of the appellant for Cenvat credit should have been considered by the Commissioner and therefore, we direct that the appellants may be given the benefit of Cenvat credit admissible subject to production of necessary documents. We also allow the claim for treatment of price charged by the appellant as cum-duty-price. Appeal is partially allowed in above terms.
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