2009 (8) TMI 276

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..... ondent. [Order]. - As per facts on record appellant is engaged in the manufacture of instrument transformers. They were availing the benefit of Cenvat credit on the welding electrodes. The said welding electrodes were further sold to their contractors/job workers, who were doing the operations in their factory itself. The credit was not reversed and no duty was paid on the welding electrodes. Acc .....

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..... the Revenue and confirmed the duty along with imposition of penalty of identical amount under Section 11AC. 3. I find that apart from the merits of the case, the demand raised in March, 2008 is by invoking longer period of limitation. It is the appellant's contention that they were under a bona fide belief that when welding electrodes are being used within their factory, though by the job worker .....

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..... ssion that they were under a bona fide belief that they were entitled to credit, cannot be rejected. Inasmuch as admittedly the demand stands raised after a period of one year from the relevant date, I hold that the same is barred by limitation. The impugned order is accordingly set aside and appeal allowed with consequential relief to the appellant. (Pronounced in Court on 7-8-2009)
Case law .....

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