2015 (10) TMI 1676

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....(Unit of EIH Ltd.),, are engaged in manufacture of cakes pastries, cookies and chocolates at its hotel premises. The appellant is registered with the Central Excise Department. They had availed CENVAT Credit on 'furnace oil' as an input, which was used for generating steam partly for the manufacture of said products, which they were clearing on payment of Central Excise duty. During the course of audit, it was observed that only 7-9% approx., out of total steam generated is used to created humidity for baking products (excisable goods) like, cakes, pastries, cookies and chocolates. Rest quantity of the steam was used towards other activities outside the production area like, laundry, centralized air-conditioning, heating water supplied ....

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....rned Counsel for the appellant submits that the show-cause notice was issued on 4 th June, 2007 for disallowing the credit availed during the period October, 2002 to Sept., 2006 by invoking the extended period of limitation. As per Section 11A(1) of the Act, the same is time barred since there was no mis-declaration of factory premises nor there was any suppression of facts with an intent to avail ineligible CENVAT Credit on the part of the appellant. 4.1 The learned Counsel further submits that in view of the precedent judicial pronouncements, the appellant was under bona fide belief that in case of furnace oil, CENVAT Credit is admissible, even if the same is partly used in non-dutiable purpose. Reliance is placed on the Tribunal's....