TMI Blog2019 (9) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material. It is settled law in various judgments in the case of Marsha Pharma Pvt. Ltd [ 2009 (6) TMI 818 - CESTAT, AHMEDABAD ] which was upheld by Hon ble Gujarat High Court in case of Charak Pharma P. Ltd [ 2012 (11) TMI 475 - GUJARAT HIGH COURT ] that the demand for the extended period of limitation was not permissible when the issue was referred to Larger Bench of Tribunal - we have no hesitation in holding that since in the present case is of prior to Larger Bench decision, the matter was in favour of the assessee in many judgments and the matter was finally settled by Larger Bench. The period involved in the present case is much before the Larger Bench Decision, therefore, there is no malafide on the part of the appellant. Hence the demand for the extended period is set aside. If any demand for the normal period exists, the adjudicating authority should be recomputed - appeal allowed by way of remand. - Excise Appeal No. 491 of 2009, 492 of 2009, 493 of 2009, 494 of 2009, 875 of 2009, 876 of 2009, 111 of 2010, 112 of 2010 - A/11707-11714/2019 - Dated:- 6-6-2019 - HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR AND HON'BLE MEMBER (TECHNICAL), MR. RA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work Notification. In view of such impression about the job work production, the appellant have not paid the duty on packaging material produced by them on job work and valuation of such job work production is also not been taken into consideration while determining the aggregate value of clearances from their factories in a financial year. There is no evidence of any statement of any person belonging to appellant s organization indicating that duty was not paid even though the appellant knew that they were required to pay excise duty on their job work production or that the supplier of raw material had informed that they were required to pay excise duty on packaging materials produced on job work because such principals were using packaging material for manufacturing of exempted goods. The impression of the job worker appellant was based on various judgments which are cited below: Aggarwal Rolling Mills 1997 (93) ELT 615 (Tribunal) Sree Rayalaseema Dutch Kassenbouw Ltd 2006 (203) ELT 248 (Tri.-Bang.) Moon Chemicals 2007 (83)RLLT 253 (CESTAT-Chennai) Salem Weld Mesh 2007 (83) RLT 568 (Cestat-Chennai) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rk, the element of excise duty involved in inputs and raw material is required deduction as held by Larger Bench of this Tribunal in case of Dai Ichi Karkaria Ltd 1996 (81) ELT 676 (Tribunal). This decision of the Tribunal was confirmed by Hon ble Supreme Court in case of Dai Ichi Karkaria Ltd reported in 1999 (112) ELT 353 (SC). He further submits that in view of above facts, the demand for the larger period of limitation and penalty needs to be set aside on all the appellants and other benefits like proper valuation of Cenvat credit in case any duty liability is confirmed may also be allowed. Subsequently vide Advocate s letter dated 12.07.2019 a copy of this Tribunal s Final order No. A/11071/2019 dated 05.07.2019 in the case of Hi scan Pvt. Ltd passed by this Tribunal was submitted and submits that the same may be considered. In the matter of appeals filed by M/s Apex (guj) Plastochem Pvt. Ltd Deepakbhai Raojibhai Patel, their Consultant Sh. K.C. Rathod adopted the submission made by Ld. Counsel Sh. P.M. Dave. Being identical issue involved. 5. On the other hand Sh. L. Patra Ld. Assistant Commissioner (AR), Sh. S.K. Shukla, Superintendent (AR) Sh. T.G. Ratho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT-Ahmedabad, the Tribunal has held under: 5. We have carefully considered the submissions made by both the sides and perused the records. We find that there is no dispute that the issue was not free from doubt, there were conflicting opinion from different bench and the matter was referred to Larger Bench. The issue was also clarified by the board Circular No. 87/5/2006 dated 06.11.2006. In these circumstances, the entertaining bonafied belief by the appellant appears to be reasonable. Therefore, the malafide intention cannot be attributed to the appellant. Accordingly, the demand for the extended period does not survive. Hence, impugned order is set aside only on ground of limitation. Therefore, we do not address the issue on merit. The appeal is allowed. In the case of Rajarshi Auto Deals Pvt. Ltd (supra), the Tribunal passed the following order: 4. Heard both the sides and perused the records. We find that as regard merit of the case, as conceded by the Ld. Counsel demand for the normal period is sustained. As regard limitation, we find that the issue was not free from doubt as the same was finally decided by Larger B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n job work basis lies with the appellant being manufacturer of goods. However, since the issue regarding liability of duty on manufacturer vis a vis principal was referred to Larger Bench of Tribunal in case of Thermax Babcock Wilcox Ltd. (supra) extended period of limitation cannot be invoked in view of the decision of Tribunal in case of Marsha Pharma Pvt. Ltd. In view of above, demand beyond the normal period of limitation is set aside. The penalty is also set aside. Appeal is partly allowed in above terms. In view of above consistent view taken by this Tribunal, we have no hesitation in holding that since in the present case is of prior to Larger Bench decision, the matter was in favour of the assessee in many judgments and the matter was finally settled by Larger Bench. The period involved in the present case is much before the Larger Bench Decision, therefore, there is no malafide on the part of the appellant. Hence the demand for the extended period is set aside. 7. We further find that if any demand for the normal period exists, the adjudicating authority should be recomputed. As per the submission of the appellant, the appellant were rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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