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2018 (9) TMI 171 - AT - Central ExciseManufacture - process of galvanization of seamless steel tubes and parts of steel structure, on job work basis - assessee paid Service tax on the above activity - Revenue entertained a view that the appellants are required to pay duty of excise on the galvanized pipes, inasmuch as galvanization amounts to manufacture in terms of the Chapter note 4 of Chapter 73 of CETA, 1985 - malafide intent or not? - Extended period of limitation. Held that:- The appellants were admittedly paying service tax on the said process and were reversing the credit of Zinc and Furnace Oil, which facts was being reflected by them in the ER-1 Returns - When admittedly the appellant was paying service tax and was reflecting said payment in the returns filed by them and was also reversing the Cenvat credit, it cannot be said that such an act of the assessee was with a mala fide mind to evade payment of duty of excise - extended period not invocable. The Tribunal in the case of M/s K. R. Packaging vs. Commissioner of Central Excise & Service Tax, Meerut-I, [2017 (2) TMI 893 - CESTAT NEW DELHI] has dealt with an identical issue and has held that where the activity amounted to manufacture and was required to pay duty of excise but the assessee paid the service tax and regularly filed the service tax returns without any objection by the Revenue, the demand of duty of excise would not be sustainable. The demand of duty is not sustainable as the same is barred by limitation - appeal allowed - decided in favor of appellant.
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