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2016 (1) TMI 839 - AT - Central ExciseImproper availment of benefit of small scale exemption under notification no. 8/98 dated 2nd June, 1998 - demand and interest thereof along with penalties imposed - whether the lower authorities were correct in including an amount received by the appellant for discharge of duty liability on the allegation that the said amount was received for manufacturing activity or otherwise? - Held that:- On perusal of the invoices, it transpires that the main appellant had in few invoices rectified the MS plates, as per drawings and instructions, did machining of M.S. plates, repair and took trial of the work carried out on the die for delamination and repaired the die on job work basis. This document indicated that main appellant had carried out the repairing work as the dies received by them from the customers and to our mind, both the lower authorities misdirected their findings without appreciating the factual matrix. Since the amounts received by the main appellant is for the repairing/reconditioning of old used dies and machinery metal part we hold that the amounts on which duty liability is confirmed along with interest is incorrect and should not have been included for discharge of duty liability as the said amount is not for any manufacturing activity. Since we are setting aside the demand of the duty liability, question of interest and penalty on both the appellants does not arise.
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