2013 (2) TMI 336 - AT - Central Excise

CENVAT Credit availed on fake documents - reversal of CENVAT Credit demand and imposed penalties - Held that - As during the period July 2003 to December 2003, when the respondent-assessee took CENVAT Credit there is no adverse finding indicating that the respondent had not filed RT-12 return. Show Cause Notice was issued on 20.06.2008. It is beyond the period of limitation demand raised need to be set aside - in favour of assessee.

Summary

Issues involved:
Appeal against Order-in-Appeal No.RKA/368-369/SRT-I/2010 regarding availing of CENVAT Credit based on fraudulent documents, extended period of limitation, and applicability of judgment of Hon'ble High Court of Gujarat.

Analysis:
The appeals were filed by the Revenue against an order-in-appeal dated 29.06.2010, where the respondent had availed CENVAT Credit based on invoices from non-existent firms or fake invoices. A show cause notice was issued seeking reversal of the credit, interest, and penalties. The first appellate authority set aside the demand, stating that the credit was not availed fraudulently based on evidence produced. The Revenue, aggrieved by this decision, approached the Tribunal.

The issue was whether the CENVAT Credit availed by the respondent was within the period of limitation. The Additional Commissioner argued that the evidence was related to one person mentioned in an alert circular, and the issue was covered by a judgment of the Hon'ble High Court of Gujarat regarding the extended period of limitation.

The Tribunal noted that during July 2003 to December 2003, the respondent had taken CENVAT Credit amounting to Rs.4,45,306, with no adverse finding on filing RT-12 return. The Show Cause Notice issued on 20.06.2008 was beyond the period of limitation, as held in the judgment of the High Court of Gujarat in a similar case. The Tribunal found that only on the point of limitation, the High Court judgment favored the respondent, leading to the rejection of the Revenue's appeals on the ground of limitation.

In conclusion, the Tribunal rejected the Revenue's appeals based on the limitation issue, as per the judgment of the Hon'ble High Court of Gujarat. The decision highlighted the importance of adhering to the period of limitation in such cases, ultimately impacting the outcome of the appeal.