2005 (4) TMI 376 - AT - Central Excise

Summary

Issues involved: Revenue's appeal against setting aside demand due to extended period of limitation not being invocable against the respondent, M/s. Sadashiv Casting (P) Ltd.

Summary:
The Appellate Tribunal CESTAT, New Delhi heard three appeals filed by Revenue against an Order-in-Appeal. The case involved the disallowance of Modvat credit on steel ingots by the respondents, M/s. Sadashiv Casting (P) Ltd., based on invoices issued by dealers. The Revenue contended that the extended period of limitation should apply as the invoices were questionable. However, the Commissioner (Appeals) set aside the demand, stating no suppression of facts by the respondents. The Tribunal noted that Rule 57-I allows a show cause notice within five years for fraud or wilful misstatement. The burden of proof lies with the Revenue to establish fraud, which they failed to do. As the invoices contained all relevant information, the respondents were not required to conduct further investigations. Consequently, all three appeals by Revenue were rejected. The Order was pronounced on 25-4-2005.