2007 (7) TMI 511

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....Mohiddin, JDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - The impugned order has demanded over Rs. 20 crores towards duty of excise and education cess from the appellants and has imposed on them equal amount of penalty. The demand is for the period March, 2003 to February, 2006 and in respect of 'unexposed photographic films' which had been marketed in cartons bearing pre-p....

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.... manufacture. The plea of revenue neutrality has also been prominently raised in this appeal. It is submitted that, if the subject goods are held to be dutiable, the appellants are entitled to take the benefit of CENVAT credit on inputs. The total credit including credit of CVD paid on the imported film rolls and credit of excise duty paid on indigenously procured inputs would exceed the amount of....

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.... 1-3-2006 denying the appellants CENVAT credit of CVD paid on unexposed photographic films imported and cleared during such period, on the ground that the imported item is marketable as such. Learned counsel has placed on record copies of such show-cause notices and we have perused the same. Learned JDR, with reference to these show-cause notices, submits that they were issued, having regard to th....

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....' plea of bona fide belief gains ground and invocation of the extended period of limitation by the department should be set aside. We have found substance in these submissions made by the learned counsel in her rejoinder. 4. In the case of Narmada Chematur Pharmaceuticals (supra), a demand of duty was set aside by the apex court after noting that the amount of Modvat credit available to th....