TMI Blog2018 (1) TMI 472X X X X Extracts X X X X X X X X Extracts X X X X ..... plicability of sub-rule (3) of Rule 6 ibid was highly contentious and at the material time, there was no proper clarity with regard to dealing with manufacture of dutiable as well as final product. Therefore, mala fides cannot be attributed, justifying invocation of the extended period of limitation and for imposition of penalties. Appeal allowed in part. - E/51508/2017-SM E/51511/2017-SM - Final Order No. 58539-58540/2017 - Dated:- 8-12-2017 - Mr. S.K. Mohanty, Member (Judicial) Shri O.P. Agarwal, Advocate - for the appellant Shri U. Sengraj, D.R. - for the respondent ORDER The issue involved in both these appeals is identical and as such, the same are taken up for hearing together and a common order is being passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attracts Nil rate of duty, the embargo created in Rule 6(3) of the Cenvat Credit Rules will not have any application for payment of amount on removal of electricity out of the factory. In this context, the ld. Advocate has relied on the judgement of Hon ble Allahabad High Court in the case of Gularia Chini Mills Ors. Vs. Union of India 2013-TIOL-568-HC-ALL-CX., which was upheld by the Hon ble Supreme Court reported in 2015 (322) ELT 769 (SC). He further submits that the show cause proceedings initiated by the department is barred by limitation of time, inasmuch as, taking of Cenvat credit by the appellant is in conformity with the Cenvat statute and there is no involvement of suppression, misstatement, fraud etc., on the part of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the factory. However, it is an admitted fact that the issue with regard to applicability of sub-rule (3) of Rule 6 ibid was highly contentious and at the material time, there was no proper clarity with regard to dealing with manufacture of dutiable as well as final product. Therefore, mala fides cannot be attributed, justifying invocation of the extended period of limitation and for imposition of penalties. 7. Therefore, I am of the considered view that the extended period of limitation cannot be invoked in this case and the demand, if any, should be confined only to the normal period. In absence of any mala fides on the part of the appellant, penalty cannot be imposed on it. 8. The appeal is disposed of in above terms. (Dictated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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