2014 (8) TMI 368

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....acture of the said baby foods. The department was of the view that these intermixtures of various vitamins are excisable goods covered by the sub-heading 2936.00 of the Tariff and since the same are being cleared for captive consumption for manufacture of instant baby food which are exempt from duty, the captive consumption exemption Notification No. 67/1995-CE would not be available to the intermixture of the vitamins and the same would be chargeable to duty. On this basis, the Jurisdictional Additional Commissioner vide order-in-original dated 18/03/05 confirmed the duty demand of Rs. 5,13,074/- against the respondent alongwith interest and beside this, also imposed penalty of equal amount on them under Section 11AC of the Central Excise ....

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.... question of excisability of the intermixture of vitamin cleared for captive use has been considered by the Tribunal and decided against the respondent vide judgment reported in 2011 (270) E.L.T. 575 (Tri. - Del.), that, however, in para 95 of this judgment, the Tribunal has observed that the demand is limited to normal limitation period, as Apex Court while dealing with this matter had already held that the view taken by the Tribunal in its earlier order that extended limitation period was not invokable, was justified, that when extended limitation period is not applicable, the penalty under Section 11AC equal to the duty demand confirmed would not be imposable and at the most penalty can be imposed only under Rule 25 of the Central Excise....