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TMI Blog2010 (7) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... al goods eligible for Cenvat credit - However demand is not sustainable on the issue of period of limitation. - E/2607/2007-SM - 752/2010-SM(BR)(PB) - Dated:- 8-7-2010 - Shri M. Veeraiyan, Member (T) REPRESENTED BY : Shri S.K. Bhaskar, DR, for the Appellant. Shri A. Jaju, Advocate, for the Respondent. [Order]. - Appeal No. 2607 of 2007 is by the department against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal authority disallowed the credit of Rs. 95,411/- and ordered recovery of the same along with interest. He also imposed penalty of Rs. 20,000/- on the assessee. The Commissioner (Appeals) has allowed the appeal of the party both on merits and on limitation. 4.Ld. DR submits that the bio-gas plant was not part of the approved plan of the factory. The use of the impugned items in the fabricati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant. Considering the nature of use the impugned items cannot be held as capital goods eligible for Cenvat credit. However, the submissions of the ld. Advocate that the demand is time-barred merits acceptance. In this regard, findings of the Commissioner (Appeals) are reproduced :- "It is seen that the demand under the impugned order has been confirmed under the extended period but the lower aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent interpretations and the belief of the respondents that they were eligible for the credit has to be held as bona fide. There is no suppression involved. There is no justification for invocation of extended period of limitation. 9.The appeal of the department is, therefore, rejected. The cross-objection and application for Condonation of Delay are dismissed as withdrawn. (Dictated pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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