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2019 (9) TMI 273 - AT - Central ExciseLiability of excise duty - job-work - case of the department is that the principal manufacturer are using the job worker manufactured goods in the manufacture of exempted goods, therefore, the job worker being a manufacturer are required to pay excise duty - Extended period of limitation - HELD THAT:- In the case of Thermax Babcock Wilcox Ltd [2017 (12) TMI 266 - CESTAT MUMBAI], Division Bench of Mumbai Tribunal referred the matter to Larger Bench and then only the Larger Bench has held that in case of job worker when the procedure under N/N. 214/86- CE is not followed and the principal manufacturer is not discharging the excise duty on their final product, job worker is required to pay excise duty. Therefore the appellants have correctly entertained the bonafide belief that on the basis of various judgments that excise duty was payable by the principal supplier of the raw material. It is settled law in various judgments in the case of Marsha Pharma Pvt. Ltd [2009 (6) TMI 818 - CESTAT, AHMEDABAD] which was upheld by Hon’ble Gujarat High Court in case of Charak Pharma P. Ltd [2012 (11) TMI 475 - GUJARAT HIGH COURT] that the demand for the extended period of limitation was not permissible when the issue was referred to Larger Bench of Tribunal - we have no hesitation in holding that since in the present case is of prior to Larger Bench decision, the matter was in favour of the assessee in many judgments and the matter was finally settled by Larger Bench. The period involved in the present case is much before the Larger Bench Decision, therefore, there is no malafide on the part of the appellant. Hence the demand for the extended period is set aside. If any demand for the normal period exists, the adjudicating authority should be recomputed - appeal allowed by way of remand.
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