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M/s Rhombus Pharma (P) Ltd. Versus Commissioner, Central Excise & Service Tax, Ahmedabad-III And Vice-Versa

2015 (11) TMI 1409 - CESTAT AHMEDABAD

SSI exemption benefit under Notification No.8/2001, 8/2002 and 8/2003 - clearance of the goods on their own account and paid duty in respect of clearance of the goods bearing brand name of the loan licensee - Invocation of extended period of limitation - Held that:- Appellant had disclosed the location of the factory, clearance of goods on payment of duty separately in the ER-1 return. In any event, the Appellant cleared the goods bearing brand name of the loan licensee and declared in their ER- .....

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The demand of duty with interest for the normal period of limitation is upheld. - Adjudicating authority directed to requantify the demand for the normal period of limitation as contended by the Assessee - Appeal disposed of. - Appeal No.E/773/2007-DB; E/Others/10620/2015; E/CO/126/2007 & Appeal No.E/872/2007-DB - Order No. A/11396-11397/2015 - Dated:- 8-10-2015 - MR. P.K. DAS, MEMBER (JUDICIAL) AND MR. P.M. SALEEM, MEMBER (TECHNICAL) For the Petitioner : Shri D.K. Trivedi, Advocate For the Res .....

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il the exemption benefit in respect of the clearance of the goods bearing the brand name of the loan licensee as the factory is situated in rural area. 2. A Show Cause Notice dt.18.01.2007 was issued, proposing demand of duty along with interest and to impose penalty for the period from 2001-02 to 2005-06 on the ground that by clubbing clearance value of the goods being brand name of loan licencee would exceed ₹ 100 lakhs. By the impugned order, the Adjudicating authority dropped the proce .....

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30. M/s Rhombus Pharma has submitted that there is no suppression of facts on their part and therefore, the demand is time barred. As far as the question of location of factory in a rural area is concerned, it was known to the Department also. While applying for registration, the location, name of the village/city, taluka, and district were provided to the Department. Moreover, they have filed their ER-1 returns showing the clearances of both branded and un-branded goods. Moreover, if their int .....

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the Departmental officers to verify about this fact. Moreover, on going through the ER-1 returns filed by the noticee, it is seen that the clearances of the branded goods (on loan licence) and the clearances of the noticee s own manufactured goods are separately given. By simply adding the two, the Department could have found what were the total clearances from the unit. The basis of the show cause notice does not contain any information which was in the exclusive possession of the noticee and .....

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i-Ahmd) held that extended period of limitation cannot be invoked. It is observed that the Assessee s plea that duty paid on branded goods is much more than the duty now being demanded and would revenue neutralize, and the entire demand requires to be verified. 5. In the present case, the learned Advocate submits that in reply to the Show Cause Notice, they demonstrated that they have paid the duty on branded goods much more than the duty demanded. For the purpose of proper appreciation of the c .....

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Learned advocate has assailed the impugned orders on limitation as also on merit. As regards limitation, he submits that the reasoning adopted by Commissioner that the appellants has suppressed the fact that their factory was located in rural area, cannot be upheld inasmuch as the said fact is not capable of being suppressed. Revenue was very well aware of location of their factory and as such, it cannot be said that there was any suppression on their part. Arguing on merit, learned advocate has .....

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d to be adjusted against the duty now being demanded from the appellant. 4. By following the ratio of above decision, we agree with the learned advocate. Admittedly, the branded goods have been cleared on payment of duty, which according to Revenue should not have the paid duty. As such, duty already paid on such branded goods is required to be adjusted against the duty now being demanded from the appellant. It is the appellants contention that the duty paid on the branded goods is much more th .....

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the extended period of limitation would be invoked as they have not declared that their factory situated in rural area. He relied upon the following decisions:- i) Pasupati Spinning & Weaving Mills Ltd Vs CCE Chandigarh 2015 218 ELT 623 ii) Dewas Metal Sections Ltd Vs CCE, Indore 2015 (319) ELT 104 (Tri-Del) 7. In the case of Pasupati Spinning & Weaving Mills Ltd (supra), the Hon'ble Supreme Court dismissed the appeal filed by the Assessee on the ground that they have not declared t .....

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