2018 (5) TMI 197 - AT - Central Excise

Area Based Exemption - N/N. 49-50/2003-CE dated 10/06/2003 - Extended period of limitation - Held that - it is an admitted fact that the appellant opted for exemption with effect from 06/06/2007 and did not intimate to the department in time but the appellant intimated to the department on 30/04/2009 availing the exemption with effect from 06/06/2007. As the fact of availment of exemption came to the knowledge of department on 30/04/2009 with effect from 06/06/2007 of the appellant s on persuasion. In that circumstances, the period of limitation starts from 30/04/2009. Admittedly, within one year of the said date of 30/04/2009, no SCN has been issued. Extended period of limitation is not invocable for the period 06/06/2007 to 29/04/2009 - the impugned order qua denying the exemption under N/N. 49-50/2003-CE dated 10/06/2003 is set aside - appeal allowed.

Summary

Issues:
Denial of benefit of exemption under Notification No.49-50/2003-CE dated 10/06/2003 for the period 06/06/2007 till 31/03/2009.

Analysis:
The appellant, a manufacturer of excisable goods in Himachal Pradesh, set up a new unit in 2007 and started availing exemption under Notification No.49-50/2003-CE from 06/06/2007. However, the appellant failed to file a proper declaration as required by the Notification. A show-cause notice was issued in 2012 to deny the exemption for the period from 2007 to 2009. The adjudicating authority allowed the exemption from 30/04/2009 but denied it for the prior period. The appellant appealed against this decision.

The appellant argued that the show-cause notice was issued using an extended period of limitation, which was not sustainable as the revenue was aware of the exemption availed by the appellant since 30/04/2009. The appellant contended that the notice was time-barred.

The Revenue opposed, stating that the appellant did not inform the department about availing the exemption on 06/06/2007, and only filed a declaration on 30/04/2009. They argued that the extended period of limitation was rightly invoked based on the appellant's failure to provide timely information to the department.

After considering both arguments, it was found that the appellant did not inform the department about availing the exemption until 30/04/2009. Since no show-cause notice was issued within one year of this date, the notice issued was held to be time-barred. The decision cited by the Revenue was distinguished as the facts were not similar to the present case.

Therefore, the Tribunal held that the extended period of limitation was not applicable for the period from 06/06/2007 to 29/04/2009. Consequently, the order denying the exemption under Notification No.49-50/2003-CE dated 10/06/2003 was set aside, and the appeal was allowed with any consequential relief.