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TMI Blog2015 (10) TMI 1676X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of cakes pastries, cookies and chocolates at its hotel premises. The appellant is registered with the Central Excise Department. They had availed CENVAT Credit on 'furnace oil' as an input, which was used for generating steam partly for the manufacture of said products, which they were clearing on payment of Central Excise duty. During the course of audit, it was observed that only 7-9% approx., out of total steam generated is used to created humidity for baking products (excisable goods) like, cakes, pastries, cookies and chocolates. Rest quantity of the steam was used towards other activities outside the production area like, laundry, centralized air-conditioning, heating water supplied to hotel rooms etc. The issue raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow-cause notice was issued on 4 th June, 2007 for disallowing the credit availed during the period October, 2002 to Sept., 2006 by invoking the extended period of limitation. As per Section 11A(1) of the Act, the same is time barred since there was no mis-declaration of factory premises nor there was any suppression of facts with an intent to avail ineligible CENVAT Credit on the part of the appellant. 4.1 The learned Counsel further submits that in view of the precedent judicial pronouncements, the appellant was under bona fide belief that in case of furnace oil, CENVAT Credit is admissible, even if the same is partly used in non-dutiable purpose. Reliance is placed on the Tribunal's decision in the case of Sudarsanam Spinning Mills - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt ruling in the case of Gujarat Narmada Fertilizers Co. Ltd. (supra), wherein it was held as under:- "13. It may be noted that litigation on interpretation of CENVAT Credit Rules has arisen on account of various conflicting decisions given by the various Benches of CESTAT, the reason being that the Rules have not been properly drafted. In the circumstances, we are of the view that in this batch of cases no penalty is leviable..." Penalty under Section 11AC of the Central Excise Act, 1944 is imposable when there is any fraud, collusions, suppression or mis-declaration of facts on part of the appellant with intent to evade payment of duty. In the present case, I find that there is no suppression or mis-declaration of facts on part of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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