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2020 (3) TMI 79 - AT - Central ExciseCENVAT credit - input services, which were being utilized by the appellant in respect of manufacturing of their final product as also other trading activities - non-maintenance of separate records - liability to discharge 5%/6% of the value of the such traded goods - extended period of limitation - penalty. HELD THAT:- Admittedly the appellant was recording the entire activity in their balance sheet which is a proper document. As such according to the settled law, it cannot be said that the appellant suppressed anything with a mala fide intention - Apart from that, we also agree with the Learned advocate that there was confusion in the field and as per various decisions, trading activity was not considered to be an exempted service prior to April 2011. After 2012, with the introduction of negative list regime, the law was not very clear and in the absence of any specific evidence attributing to the mala fide intent of the appellant, it has to be held that there can be a bona fide belief on the part of the assessee, especially when the entire activities are being reflected in the Books of accounts - As such we hold that the demand for period beyond the normal period of limitation would be barred. The matter to the original adjudicating authority for re-quantification of the demand falling within the period of limitation - As regards the normal period, appellant is entitled to contest the same before the authorities below based upon the dates when the normal period was changed as also on the basis of precedent decision - Further, the appellant’s plea of reversal of proportionate credit would also be re-considered by the lower authorities. Penalty - HELD THAT:- There was no mala fide on the part of the appellant, the same would not justify imposition of penalty upon them. Appeal allowed by way of remand.
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