9911796707
TMI Blog2015 (12) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased yarn from outside. The period of dispute in this case is from September, 2000 to March, 2003. During this period, the appellant were paying duty on clearances of spun yarn for captive consumption on the value determined under Rule 8 of the Central Excise Valuation Rules, 2000, that is, on the basis of 115% of the cost of production. The department, subsequently, raised the objection that since the appellant were also selling certain quantity of the yarn to independent buyers from the hosiery section, the clearances of the yarn for captive consumption within the factory should be valued on the basis of the sale price to independent buyers. Another objection of the department is that in respect of receipt of capital goods the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Act, 1944 and (b) demand of interest on the wrongly taken capital goods CENVAT Credit was confirmed. 4. Against the above order of the Commissioner, this appeal has been filed. 5. Heard both the sides. 6. Shri Vikrant Kackria, Advocate, ld. Counsel for the appellant, pleaded that while he does not contest the demand of interest on the wrongly taken capital goods CENVAT Credit, he is contesting only duty demand of Rs. 47,61,675/- confirmed against the appellant along with interest and equivalent penalty; that the entire quantity of the yarn manufactured in the appellant company was being cleared for captive consumption to their hosiery unit within the same factory; that the appellant during the period of dispute were also purchasing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for captive consumption and in cases where part of the goods manufactured are sold to independent buyers and remaining quantity is cleared for captive use, goods cleared for captive use would be valued at the price at which the goods had been sold to independent buyers; that when in view of the Boards Circular dated 30/6/2000 and conflicting judgments on this issue, there were scope for doubt as to how the goods cleared for captive consumption are to be valued, when part of the goods are also sold to independent buyers, the allegation of deliberate violation of the provisions of Central Excise Act, 1944 or of the Rules made thereunder would not sustain and hence, longer limitation period under proviso to section 11A(1) would not be applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arding duty demand of Rs. 47,61,675/- in respect of the clearances of yarn manufactured by the appellant for captive use within the factory during period from September, 2000 to March, 2003, the show cause notice for duty demand had been issued on 4/10/2005 and the same would survive only if the circumstances exist for invoking the longer limitation period of five years under proviso to section 11A(1). The appellant in respect of the clearances of the yarn manufactured and cleared for captive use, were paying duty on the basis of value determined under Rule 8of the Central Excise Valuation Rules, 2000, that is, on 115% per cent of the cost of production. There is no dispute that yarn manufactured in the spinning section was being transferre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... independent buyers, in respect of the goods cleared for the captive use, the value would be determined under Rule 8 of the Central Excise Valuation Rules, 2000. Apex Court in the case of Continental Foundation Joint Venture Vs. CCE-Chandigarh (Supra) has held that when on account of various circulars operating at different point of time there was scope for doubt for an assessee in respect of the some issue, the longer limitation period of 5 years under section 11A(1) would not be invokable. In view of this, we hold that the entire duty demand for the period from September, 2000 to March, 2003 raised vide show cause notice dated 4/10/2005 is time barred. The impugned order confirming the duty demand of Rs. 47,61,675/- along with interest an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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