2014 (2) TMI 586

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.... furnace oil used in the manufacture of electricity. A part of the electricity was being diverted by them to their residential colony. 2. By entertaining a view that appellant was not entitled to avail credit of duty paid on the furnace oil which stand used in the manufacture of electricity and consumed in residential colony, demand of duty of Rs.2,31,373/- was raised against the appellant for the period July, 2000 to September 2004 by way of raising a show cause notice dated 29.10.04. The said show cause notice culminated into an order passed by the original adjudicating authority disallowing the credit as proposed in the notice and imposing penalty of identical amount under Rule 13 of Cenvat Credit Rules, read with Section 11 AC of the C....

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....e Hon'ble Gujarat High Court as also the Larger Bench of the Tribunal has interpreted the provisions of Rule 6(2) of Cenvat Credit Rules in a manner that no reversal liability of Cenvat credit would arise in respect of assessee where no separate accounts are being maintained in case of fuel which is being used for dutiable as also for exempted final product. If the expert bodies, judicial as well as quasi judicial, have interpreted the law in favour of the assessee, the assessee cannot be held guilty of any suppression or mis-statement etc. Inasmuch as the show cause notice stand issued by invoking the longer period of limitation, I hold that demand is barred by limitation. Accordingly, the impugned order is set aside on this ground and app....