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TMI Blog2019 (8) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... nd holding that during the relevant period viz., April 2009 to March 2011, the Assessee had the bona fide belief that the trading activity carried out by it was Exempted Services and the Assessee was eligible to avail the CENVAT Credit for the period prior to 1.4.2011 when such trading activity was deemed to be Exempted Services and therefore, the Show Cause Notice issued to the Assessee invoking the extended period of limitation was not justified as the Assessee had not mala fidely evaded any payment of Duty on such trading activity by availing the CENVAT Credit in respect of input services. 2. The learned counsel for the Appellant-Revenue Ms.Aparna Nandakumar, relying upon the decision of the Gujarat High Court in the case of Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The main contention put forward by the appellant is on the ground of limitation. The period involved is from April 2009 to March 2011 whereas the show cause notices have been issued invoking the extended period of limitation. The ld. counsel for the appellant has submitted that there was conflicting decisions during the relevant period holding that trading activity is an exempted service and is eligible for credit. Indeed, the position prior to 1.4.2011 was doubtful and there were decisions in favour of assessee as well as Revenue. Only after 1.4.2011, the position was settled by adding Explanation to the definition of exempted services which made trading activity to be a deemed exempted service. It is very much clear from the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ril 2009 to March 2011, the Assessee was, obviously, under bona fide belief in view of the conflicting decisions of the Tribunals during that period and taking the trading activity as Exempted Services, availed the CENVAT Credit which is sought to be reversed and recovered by the Department invoking the extended period of limitation. Such a bona fide belief cannot be held to be done with ulterior purpose for evading the Duty and therefore, the extended period of limitation would not be available to the Revenue Authority in view of the aforesaid decision rendered by the Hon'ble Supreme Court. 7. The judgments relied upon by the learned counsel for the Revenue viz., Gujarat High Court's decision in CCE v. Neminath Fabrics Pvt. Ltd. a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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