TaxTMI 
TaxTMI 
2019 (1) TMI 57
X X X X Extracts X X X X
X X X X Extracts X X X X
....sh for a period spanning 14 years. The period involved is 2001-02 to 2005-06 and opted for the foreclosure of the scheme at a discounted rate of 6.5% of the NPV offered by the Government of Andhra Pradesh. Appellant paid off the dues to Government of Andhra Pradesh. During the course of an audit by AG Office, this point was raised with the appellants and since it was not accepted a show cause notice dated 07.05.2010 was issued to the appellant for demanding Central Excise Duty on the discount allowed by the Government of Andhra Pradesh for the period 2001-02 to 2005-06. Appellant contested the show cause notice on limitation as well as on merits. The adjudicating authority, after following due process of law, confirmed the demands raised al....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or the extended period of 5 years from the date of show cause notice. It is his submission that if this provisions are followed demand for the period 2001-02 to 2004-05 is hit by limitation and for the period 2005-06, again the question as to bonafide belief of the appellant that no Central Excise duty is payable on such amount is to be understood from the fact that during the period in question, Supreme Court in the case of CCE Vs Mazagon Docks Ltd [2005 (187) ELT 3] had taken a view that subsidy is not an additional consideration. He would submit that discount offered by the Government of Andhra Pradesh is nothing but a subsidy when the sales tax deferment scheme is foreclosed. 4. Learned department representative, on the other hand, sub....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... misstatement or suppression or fraud or collusion even in evasion of Central Excise Duty for the period 5 years from show cause notice. In the case in hand, none of these ingredients appeared to have been brought out in the show cause notice. Be that as it may, since the mandate of first proviso of Sec.11A(1) of Central Excise Act only contemplates for the demand up to 5 years from the date of show cause notice, in our view the demands raised on the amount extended as discount by the Government of Andhra Pradesh for the period 2001-02 to 2004-05 is hit by limitation. We hold so. 8. As regards the demand for the period 2005-06, which falls within the period of 5 years of the issuance of show cause notice, we find that firstly, there is no ....