TMI Blog2019 (5) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... t what was being cleared by the appellant was a complete syringe - The findings of the Lower Authorities are only based upon the fact that the packaging material sent by the appellant alongwith various parts of the syringe bears the name of the buyer s unit. The matter has not been investigated thoroughly and the various submissions made by the appellant has not been adverted to by the Lower Authorities. Extended period of limitation - HELD THAT:- The entire demand is barred by limitation having been raised beyond the normal period. The issue involved is bona fide issue of interpretation and inasmuch as the various parts cleared by the appellants were under going further processes of manufacturer at the buyer s premises, appellants canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at appellants were clearing complete syringes, which were liable to duty of excise. 3. In view of the foregoing proceedings were initiated by way of issuance of a show cause notice dated 02/05/2012 raising demand of duty of ₹ 4,24,288/- for the period 2007-08. The appellant contested the demand on merits as also on limitation. However, the Original Adjudicating Authority did not find favour in the same and confirmed the demand alongwith confirmation of interest and imposition of penalty of an identical amount. 4. On appeal Commissioner (Appeals) rejected the same by observing that the appellants had deposited the duty alongwith interest even prior to issuance of the show cause notice and are not contest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s observed in the said decision of Commissioner (Appeals) that on receipt of the various parts of the disposable syringe these are taken to the packing section for quality-control check. Here, the syringes are packed in ribbon packing machine into pouches with laminated film and paper and LDPE film; these are together put in inner boxes; which are put in master cartons; and later in the sterilizing machines where these are sterilized with ethylene-oxide gas; after sterilization, the boxes are placed in a quarantine area and are dispatched, as per order. 7. He has further observed that after assembling the syringe material and packaging material are sent to the quality control laboratory for inspection and testing, as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the various submissions made by the appellant has not been adverted to by the Lower Authorities. 10. Apart from holding in favour of the assessee, we also note that the entire demand is barred by limitation having been raised beyond the normal period. The issue involved is bona fide issue of interpretation and inasmuch as the various parts cleared by the appellants were under going further processes of manufacturer at the buyer s premises, appellants cannot be held guilty of non-payment of duty by way of any suppression or misstatement. As such, we hold that the demand is also time barred. 11. In view of foregoing, we hold the impugned orders are unsustainable. The same are accordingly set aside by setting as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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