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2017 (7) TMI 87

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..... ied with the requirement of the Central Excise statute on removal of used capital goods from the factory, the charges of suppression, misstatement etc. cannot be alleged, justifying invocation of the extended period of limitation, for issuance of SCN - demand barred by time limitation - appeal allowed - decided in favor of appellant. - E/538/2011-EX [SM] - A/56498/2016-SM[BR] - Dated:- 16-12-2016 .....

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..... iled capital goods namely, DMT Melter Heat Exchanger was removed by the appellant under the cover of invoice No.1914 dated 23.11.2007 to its sister concern M/s. Uflex Ltd., Noida. Since the said capital goods removed from the factory did not suffer the Central Excise Duty, the Department initiated show cause proceedings against the appellant, for confirmation of service tax demand under sub Rule s .....

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..... hod, is inconformity with sub Rule (5) of Rule 3 of the Cenvat Credit Rules. He further submits that since calculation of percentage point on straight line method was substituted in sub-rule (5) of Rule 3 ibid on 27.02.2010 vide Notification No.6/2010 CE (NT), the same should have the retrospective effect. It is his further submission that the show cause proceedings are barred by limitation of t .....

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..... xtending the benefit of straight line method of computation of the cenvat credit to the appellant, since the period is prior to the date of such Notification. He further submits that since the show cause notice was issued within the normal period of limitation from the date of knowledge of the Department, the proceedings are not time barred. 5. Heard both sides and perused the records. 6. I .....

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..... ance of show cause notice. 7. Therefore, I am of the view that proceedings initiated by the Department for confirmation of the cenvat demand and for imposition of penalty is clearly barred by limitation of time. Thus, the impugned order is set aside and the appeal is allowed in favour of the appellant on the ground of limitation alone, without going into the merits of the case. [Dictated and .....

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