TMI Blog2016 (11) TMI 789X X X X Extracts X X X X X X X X Extracts X X X X ..... remand the matter to the original adjudicating authority for requantification of the demand, if any falling within the limitation period. The issue was not free from doubt and there is no malafide on the part of the appellant, imposition of any penalty upon them is not justified. Appeal disposed off - decided in favor of appellant. - Appeal No. ST/315, 318/2012-ST (DB) - Final Order No. 54908-54909/2016-CU (DB) - Dated:- 3-11-2016 - Ms. Archana Wadhwa, Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Ms. Rinki Arora, Advocate for the Applicants Ms. Neha Garg, DR for the Respondent ORDER Per Archana Wadhwa Both the appeals are being disposed of by one order as the issue is common. The demand to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawal Photo Finish. As such, the demand stands raised by invoking the extending period of limitation. It is seen that the said issue was the subject matter of consideration by the Government as also by the Tribunal. Government in its Circular F. No. 233/2/2003-CX-4, dated 7-4-2004 addressed to the Punjab Colour Lab Association had clarified that service provider was entitled to claim exemption in respect of inputs, material consumed/sold to the service recipient. Apart from the above clarification, the earlier decision of the Tribunal in the case of Shilpa Colour Lab as also in the case of Adlab Labs etc. were in favour of the assessee. As such, it can be safely concluded that there could be bona fide belief on the part of the respondents a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al used would not form part of the value of services. By holding so, the matter was sent back for requantifying the demand falling within the period of limitation. The Bench further observed that on account of bona fide belief, no penalty is required to be imposed. By applying the ratio of the above decision to the facts of the present case, we hold that the demand beyond the period of limitation is time barred and no penalty is required to be imposed. Matters are remanded for requantifying the duty demand falling within the period of limitation. While requantifying the duty, the claim of the appellants as regards the credit of duty/tax paid on the raw materials is required to be considered and if found eligible, to be allowed. 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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