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2017 (1) TMI 541 - CESTAT NEW DELHIManufacture - process of tinting - CBEC Circular dated 3.10.96 - suppression of facts - extended period of limitation - Held that: - The process of tinting of base paint is not a new process in the industry. CBEC has taken the view in 1996 that such process cannot be considered to be process of manufacture. However, this view merits revision amendment of Section 2(f). The appellant have entertained a bona fide view that process of tinting may not be liable to excise duty in the light of long standing practice in the industry and CBEC clarification. It is also to be noted that the demands in the present case have been made for the period immediately after the amendment of Section 2(f). As such, we are of the view that the allegation of suppression made against the appellant cannot be sustained. Consequently, there can be no demand of excise duty beyond the normal period of limitation sanctioned by the Section 11A - the demand beyond the normal period of limitation set aside - the original adjudicating authority directed to re-quantify the demand - penalty set aside - appeal allowed - matter on remand.
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