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TMI Blog2012 (11) TMI 959X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing activity to bring into existence gauze fabrics. Further that before further process, such fabric could not be marketed. On such twin grounds, the assessee held a belief that no duty was required to be paid. It was also pointed out that the assessee did not avail of any Cenvat credit on the inputs used. Under the circumstances, the respondent had put up a case of bonafide belief. Also the Commissioner upheld such view of the assessee, larger period of limitation could not be applied - in favour of assessee. - TAX APPEAL NO. 1263 OF 2011 - - - Dated:- 17-9-2012 - AKIL KURESHI AND MS. HARSHA DEVANI, JJ. Darshan M. Parikh for the Appellant. Paresh M. Dave for the Respondent. ORDER Akil Kureshi, J. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During personal hearing, in addition to reiterating the above aspects, the respondent also contended that under bona fide belief that no manufacturing activity is carried on, duty was not paid. The Commissioner of Central Excise by his order dated 31.12.04 upheld the contention of the respondent assessee. He was of the opinion that in absence of any manufacturing activity, the respondent was not liable to pay any excise duty. Such judgment was carried in appeal by the Revenue before the Tribunal. The Tribunal by the impugned judgment, partially reversed the order of the Commissioner. In so far as the question of excisability is concerned, the matter was decided in favour of the Revenue. However, the Tribunal was of the opinion that sin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondent was that the respondent undertook no manufacturing activity to bring into existence gauze fabrics. Further that before further process, such fabric could not be marketed. On such twin grounds, the assessee held a belief that no duty was required to be paid. It was also pointed out that the assessee did not avail of any Cenvat credit on the inputs used. Under the circumstances, the respondent had put up a case of bonafide belief. In fact, the entire issue on merits was decided by the Commissioner in favour of the respondent. It was on the basis of these factors, the Tribunal held that larger period of limitation would not be available to the Department. We are of the opinion that the Tribunal committed no error. When full facts we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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