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TMI Blog2017 (3) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... ged in manufacture of 'PET Preforms' and 'Woven Sacks' and are registered with the central excise department. In respect of purchases from EOUs who are charging duties after availing exemption in terms of Sl. No.2 of Notification No. 23/2003-CE dated 31.03.2003 the credit has to be availed as per the formulae prescribed under Rule 3(7)(a) of CENVAT Credit Rules, 2004. A show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That the appellants have not suppressed any facts as it was only mistake in interpreting the formulae and appellant was under bonafide belief that the formulae has to applied in such manner. That therefore the show cause notice issued invoking the extended period is not sustainable. It is also pointed out by the Ld. Consultant that due to the error in applying the formulae the appellant had availe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess credit happened to be availed by the credit only because of the wrong application of formulae. Rule 3(7)(a) of CENVAT Credit Rules, 2004 prescribes a formulae in case the EOU avails the benefit of Notification No. 23/2003. For the period up to 28.02.2006 and thereafter these formulae had undergone frequent amendments as shown below: a. For the period upto 28.02.2006: 50 % of X multiplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ull suppression of facts with intent to evade payment of duty. The show cause notice issued invoking the extended period is therefore not sustainable. The Tribunal in the case of CCE, Jaipur vs M/s Shree Pet [2008-TIOL-937-CESTATDEL] had occasion to consider a similar issue and held that penalty is not imposable. In view thereof, the impugned order imposing penalty is set aside. The appeal is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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