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TMI Blog2022 (4) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... nit of the appellant was under physical control of the Department. As it is evident from the records that the appellant has stopped such practice for which demand sought to be proposed against the appellant, we hold that for the period 24.4.2009 is not sustainable as same is presumptive demand. Therefore, for the period 24.4.2009 till October 2011, the demand of duty is not sustainable as proposed in the impugned show cause notice. Extended period of Limitation - HELD THAT:- The appellant s unit was under physical control of the Central Excise Department, therefore, show cause notice dated 31.1.2012 issued for the period January 2007 till 23.4.2009 is barred by limitation, as the same has been issued by invoking extended period of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in deviation, from the specified standards, such as moisture check and other smoking attributes. However, there are certain quality checks which are visual in nature and thus, are conducted on the production line itself without taking the sticks to the laboratory. One such check is brand mixing, which is prevention of packing the cigarettes of one particular brand in a packet meant for another brand, in order to avoid contraventions of various applicable laws. 3. From time to time, the appellant has devised a methodology to prevent brand mixing. Until December 2006, the appellant was having the practice wherein cigarettes coming out of making machines were put in metal tray with capacity of 1000 cigarette sticks each and the trays were k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tte before starts packing, the 4000 cigarette kept in a tray, and cigarette of one brand is not packed in a packet meant for different brand. The appellant has duly maintained the records pertaining to cigarette used in the said pasting activity from January 2007 onwards. 5. At the end of the shift, the aforesaid pasted cigarettes were collected by production staff and were sent to the ripping section where such cigarettes were ripped open, tobacco was retrieved out of these cigarettes and the retrieved tobacco was mixed with loose tobacco of the same brand. The appellant has duly maintained the records pertaining to the said ripped cigarettes and mixing of ripped tobacco. 6. In view of these factual background, a show cause notice da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on 24.4.2009 itself, as the unit of the appellant was under physical control of the Department. One such intimation is also placed on record in reply to the query raised vide letter dated 7.8.2009. The said replies also taken on record and extracted as under: 10. As it is evident from the records that the appellant has stopped such practice for which demand sought to be proposed against the appellant, we hold that for the period 24.4.2009 is not sustainable as same is presumptive demand. Therefore, for the period 24.4.2009 till October 2011, the demand of duty is not sustainable as proposed in the impugned show cause notice. 11. We further take note of the fact that the appellant s unit was under physical control of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X
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