2004 (11) TMI 501 - AT - Central Excise

Summary

Issues: Denial of Cenvat credit for capital goods, Grounds of limitation

Denial of Cenvat Credit for Capital Goods:
The Appellate Tribunal CESTAT, Chennai, dealt with a case where the lower authorities denied Cenvat credit of Rs. 18,612/- to the assessee for certain capital goods received from a supplier's branch office. The denial was based on the argument that the bills under which the goods were received were not valid documents for Cenvat purposes. The show cause notice for this denial was issued invoking the extended period of limitation due to alleged suppression of facts. The appellant contended that the department was aware of them taking the credit, as evidenced by the Commissioner (Appeals) acknowledging the filing of details of credit taken on all capital goods spares as required under the Cenvat Credit Rules. The appellant relied on a Supreme Court judgment to argue that if all relevant facts were known to the department, there was no wilful suppression by the assessee. The Commissioner (Appeals) also noted the filing of necessary details, leading to the conclusion that there was no suppression, and thus, the extended period of limitation should not have been invoked.

Grounds of Limitation:
The main ground in the appeal was the limitation issue. The appellant successfully argued that since all relevant details regarding the credit taken on capital goods spares were filed as required by the rules and were known to the department, there was no suppression of facts. Therefore, the invocation of the extended period of limitation for demanding the amount was deemed unjustified. The appeal was allowed on the ground of limitation, and the order was dictated and pronounced in open court.